On 20 July 2023, the European Banking Authority (EBA) issued a consultation on draft templates for collecting climate related data from EU banks.

The consultation is part of the one-off Fit-for-55 climate risk scenario which the EBA carries out with other European Supervisory Authorities with the support of the European Central Bank and the European Systemic Risk Board.

The draft templates are designed to collect climate-related and financial information on credit risk, market and real estate risks. Banks are asked to report aggregated and counterparty level data as of December 2022. Collecting counterparty level data will allow to assess concentration risk of large climate exposures, as well as to capture amplification mechanisms and assess second round effects. Aggregated data will inform on the climate-related risks of the banking sector more broadly. The draft templates are accompanied by a template guidance, which includes definitions and rules for compiling the templates.

The consultation runs until 11 October 2023.

Following the consultation, the EBA will launch a data collection at the end of November with the support of the Single Supervisory Mechanism and other competent authorities.

70 banks will take part in this exercise (same banks as those included in the 2023 EU-wide stress test). In addition, competent authorities might request other banks in their respective jurisdictions to participate.

The one-off Fit-for-55 climate risk scenario analysis is expected to start by the end of 2023, with publication of results envisaged by Q1 2025.

For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.