The EBA launches its monitoring of climate risk in the EU/EEA banking sector
EBA launched a climate risk dashboard based on banks’ Pillar 3 ESG disclosures. This tool provides centralized access to climate risk indicators, aiding assessment and monitoring across the EU/EEA banking sector. Data reveals that over 70% of bank exposures are linked to high climate‑impact sectors, while less than 30% face elevated physical risk. Many loans secured by immovable property have high energy efficiency scores, though estimates are widely used. The dashboard, based on 2023‑2024 data, marks the first step in a broader ESG risk framework, with regular updates planned.