On 8 May 2026, the European Banking Authority (ECB) updated its compendium of non-binding good practices for climate and nature risk management and climate and nature-related stress testing to support banks with know-how to close gaps in their risk management frameworks and address vulnerabilities in the evolving risk environment.
The compendium serves different functions within the banks, by describing good practices in sufficient detail and placing particular focus on areas where approaches are typically less advanced, such as physical or nature-related risks. The updated good practices also support in a proportionate way smaller and less materially exposed banks by pointing to less sophisticated practices as well as existing and publicly available tools that other banks have benefited from.
Next steps
As part of its ongoing supervisory dialogue, the ECB will continue to work closely with banks to make sure they are resilient to climate and nature related risks, particularly at a time of heightened uncertainty, in line with its supervisory priorities for 2026-28.
The ECB has found that prudential transition planning practices are still uneven across banks and still developing in a number of areas. It will continue to address this topic in its supervisory dialogue in the months ahead.