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...