One year left for EU banks to set up EBA-aligned ESG risk management

The European Banking Authority (EBA) will require large EU banks to identify and manage ESG risks, including climate transition risks, by January 11, 2026.

In its newly-published ‘Guidelines on the management of ESG risks’, the EU’s banking authority lays out the scope, compliance requirements and specific rules for banks to manage their environmental, social and governance (ESG) risks.