The European Supervisory Authorities (EBA, EIOPA, and ESMA) published joint guidelines on environmental, social, and governance (ESG) stress testing on 1 August 2026. The guidelines provide national insurance and banking supervisors with clear instructions on integrating ESG risks into supervisory stress tests, whether using established frameworks or conducting complementary assessments of ESG impacts. They establish common standards for embedding ESG risks across the EU financial system, outline how to design ESG‑inclusive tests, and describe the necessary organisational and governance arrangements. The documents aim to support a consistent, long‑term approach while allowing flexibility for future methodological advances and improved data availability. They do not impose new requirements for competent authorities. The guidelines will be subject to a ‘comply or explain’ procedure and will be translated into all EU official languages by the first quarter of 2026.
© European Securities and Markets Authority (ESMA).
Summary adapted from ESMA materials available at https://www.esma.europa.eu .
This document has been drafted using material downloaded from ESMA’s website.
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https://www.esma.europa.eu/press-news/esma-news/esas-publish-joint-guidelines-esg-stress-testing
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