EBA publishes final Guidelines on management of ESG risks for financial institutions
The European Banking Authority (EBA) has published its final Guidelines on the management of Environmental, Social, and Governance (ESG) risks. The Guidelines establish requirements for institutions to identify, measure, manage, and monitor ESG risks, ensuring their resilience in the short, medium, and long term. The Guidelines detail the necessary internal processes and ESG risk management arrangements that institutions must implement in accordance with the Capital Requirements Directive (CRD6). The Guidelines will be effective from 11 January 2026, with an extension to 11 January 2027 for small and non-complex institutions.