On 8 January 2026, the European Supervisory Authorities (EBA, EIOPA and ESMA) published joint Guidelines on ESG stress testing. The guidelines give national insurance and banking supervisors clear instructions on how to embed environmental, social and governance risks into supervisory stress tests, whether using existing frameworks or conducting supplementary ESG assessments. They establish common standards for ESG integration across the EU financial system, outline required organisational and governance arrangements, and promote a consistent long‑term approach while allowing flexibility for future methodological advances and better data. The guidelines do not impose new compulsory requirements on competent authorities. They will be subject to a “comply or explain” procedure and will be translated into all EU official languages in the first quarter of 2026.
© European Banking Authority.
Summary adapted from material on the EBA website (https://www.eba.europa.eu ).
https://www.eba.europa.eu/publications-and-media/press-releases/esas-publish-joint-guidelines-esg-stress-testing
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