On Thursday, 8 January, the European Supervisory Authorities (ESAs)—the EBA, ESMA, and EIOPA—published their new joint guidelines on environmental, social, and governance (ESG) stress tests.
These guidelines provide national insurance and banking supervisors clear guidance on how to integrate ESG risks into prudential stress tests and on how to design stress tests. They come into play both when banks and insurers use established frameworks and when they conduct complementary assessments of the impact of ESG risks. They do not, however, introduce any new requirements for the competent authorities.
The ESAs conducted a public consultation on the joint guidelines during the summer of 2025. These guidelines will be translated into the official languages of the European Union and published on the ESAs’ websites. Competent authorities will have two months from [the translated guidelines’] publication to notify the relevant ESA whether they comply or intend to comply with the guidelines.
The joint guidelines will apply as of 1 January 2027.
Read the report: https://aeur.eu/f/k7m (Original version in French by Anne Damiani)