On 13 December 2022, the European Banking Authority published its roadmap on sustainable finance.

The roadmap outlines the EBA’s work plan on sustainable finance and environmental, social and governance (ESG) risks. The roadmap explains the EBA’s approach and objectives in this area of ESG and describes the mandates and tasks received from the EU legislators and directly from the European Commission, together with the EBA’s associated planned activities and timelines.

The roadmap outlines:

  • In the area of transparency and disclosures, the EBA will continue its work related to the development and implementation of institution’s ESG risk and wider sustainability disclosures. Similarly, the EBA will continue its efforts to ensure that ESG factors and risks are adequately integrated in institutions’ risk management frameworks and in their supervision, including through further developments on climate stress tests.
  • In the area of prudential regulation, the EBA has initiated an assessment of whether amendments to the existing prudential treatment of exposures to incorporate environmental and social considerations would be justified.
  • The EBA will contribute to the development of green standards and labels, and measures to address emerging risks in this field, such as greenwashing.
  • The EBA will be assessing and monitoring developments in sustainable finance and institutions’ ESG risk profile, including on the basis of the expected supervisory reporting.