On 5 November 2025, the European Banking Authority (EBA) published its final Guidelines on environmental scenario analysis, which complements the EBA Guidelines on the management of Environmental, Social and Governance (ESG) risks by specifying supervisory expectations regarding how institutions should conduct environmental scenario analysis.
Background
The Guidelines, like the Guidelines
On 10 September 2025, the European Parliament (EP) published the text that it had adopted at first reading of a European Parliament legislative resolution on the proposal for a Regulation of the EP and of the Council amending Regulation (EU) No 909/2014 as regards a shorter settlement cycle in the Union. The EP
On 9 September 2025, the Joint Committee of the European Supervisory Authorities (ESAs) published its fourth annual report on the extent of voluntary disclosure of principle adverse impacts (PAIs) under the Sustainable Finance Disclosure Regulation (SFDR).
Background
Article 18 of the SFDR provides that the ESAs must take stock
On 20 August 2025, the European Securities and Markets Authority (ESMA) and the European Environment Agency (EEA) signed a Memorandum of Understanding (MoU) to strengthen collaboration between the two institutions in relation to sustainable finance.
The MoU notably incorporates the integration of environmental factors into the EU sustainable finance
On 6 August 2025, the European Banking Authority (EBA) published an opinion in the form of a no-action letter on the application of the provisions relating to disclosures on environmental, social and governance (ESG) risks.
Background
On 22 May 2025, the EBA issued a consultation paper on draft implementing technical standards
On 4 August 2025, the European Securities and Markets Authority published consolidated Q&As on the Sustainable Finance Disclosure Regulation and Commission Delegated Regulation (EU) 2022/1288.
On 30 July 2025, the European Commission (Commission) adopted a recommendation on voluntary sustainability reporting for small and medium-sized companies (SMEs).
On 26 February 2025, the Commission adopted the Omnibus I simplification package which proposed to limit mandatory sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD) to large
On 27 June 2025, the European Supervisory Authorities (ESAs) launched a public consultation on their draft joint guidelines for Environmental, Social and Governance (ESG) stress testing as mandated by the Solvency II Directive (Solvency II) and the Capital Requirements Directive IV (CRD IV).
Background
Article 100(4) CRD
On 30 June 2025, the European Securities and Markets Authority (ESMA) issued a Final Report following a Common Supervisory Action (CSA) with Member State competent authorities (NCA) on the integration of sustainability risks and disclosures in the investment fund sector.
Background
The purpose of the CSA was to assess
On 25 June 2025, the European Commission (Commission) updated its webpage on the Platform on Sustainable Finance.
The Commission has added text to the ‘Stakeholder request mechanism’ section. The mechanism was launched in October 2023 and allows stakeholders to submit suggestions based on scientific and/or technical evidence, on new activities that could be