2025-01-01

Final Guidelines on the management of ESG risks

The European Banking Authority issued final guidelines requiring financial institutions to systematically identify, measure, manage, and monitor environmental, social, and governance risks. Institutions must integrate these risks into their internal frameworks, conduct materiality assessments, and develop specific transition plans with quantifiable targets to ensure resilience over short, medium, and long-term horizons. The guidelines apply from January 2026 for most institutions, with an extended deadline of January 2027 for small and non-complex entities.

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European Union

European Banking Authority

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