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.