EBA Establishes Stricter ESG Reporting Requirements

On January 24, the European Banking Authority (EBA) released a new set of mandatory templates and instructions that banks will have to follow to meet necessary disclosure requirements. This comes following the EBA’s review of environmental, social and governance (ESG) reports which found shortcomings in how European banks are mitigating ESG risks. Banks will have to comply with the new climate reporting requirements twice a year. The requirements take existing standards such as the Task Force on Climate-related Financial Disclosures a step further by establishing templates and more granular information in an effort to provide investors more comparable and transparent data.

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