Regulatory Alerts2026-03-31
Added · Updated
ESAs Joint Guidelines on ESG Stress Testing
Competent authorities must notify the respective ESA of their compliance or intent to comply with these guidelines, or provide reasons for non-compliance, by 31.05.2026. Authorities are required to integrate environmental, social, and governance risks into supervisory stress testing activities, defining objectives for both short-term (up to five years) and long-term (at least ten years) horizons. The guidelines mandate a risk-based materiality assessment to identify relevant ESG risks and encourage a gradual extension of scope, initially prioritizing environmental risks. Competent authorities must establish methodological frameworks for scenario design, granularity, and data collection, ensuring consistency and proportionality in the assessment of financial entities' resilience.
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