đ EBA Guidelines on ESG Risk Management: A New Cornerstone of the EU Regulatory Framework đ
Published in January 2025, the #EBA Guidelines on the management of ESG risks are transforming how banks embed ESG risks into their strategies and day-to-day operations.
While the EU regulatory focus was initially on climate and environmental risks, the scope has now expanded:
âïž The 2024 EU Banking Package (CRD VI & CRR III) makes transition plans mandatory under the prudential frameworkâcovering the full spectrum of E, S, and G risks, including social and governance dimensions.
âïž The EBA guidelines clarify supervisory expectations for these plans, from materiality assessments to impact analysis on strategy and business models, and the integration of ESG risks into governance, risk management, internal control, and data systems.
đ At Ailancy, we support banks in translating these regulatory expectations into pragmatic, actionable transition plans, leveraging our deep expertise in ESG transformation.
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