EBA publishes discussion paper on integration of ESG risks into risk management and supervision of credit institutions and investment firms – consultation period until 3 February 2021

On 3 November 2020, the European Banking Authority (EBA) published a discussion paper on the management and supervision of Environmental, Social and Governance (ESG) risks. The purpose of the discussion paper is to collect comments and feedback from stakeholders for the preparation of a final report on the subject. The discussion paper provides a comprehensive proposal on how ESG factors and risks could be integrated into the regulatory and supervisory framework for credit institutions and investment firms.

The discussion paper:

• outlines definitions of ESG risks based on the EU taxonomy and gives an overview on current assessment methods
• makes recommendations on the integration of ESG risks into business strategies, governance, and risk management and supervision

The discussion paper is available on the EBA online service. The consultation period ends on 3 February 2021.

For further information, please contact

Torsten Groschup, Senior Risk Expert, tel. +358 9 183 5333 or torsten.groschup(at)fiva.fi