The European Banking Authority has released an ESG dashboard that sets out a broader framework for monitoring ESG risks and provides centralised access to comparable climate risk indicators for the EU and EEA banking sector, drawing on banks’ Pillar 3 ESG disclosures. The tool is intended to support assessment of both transition and physical climate-related risks and to provide benchmarks across jurisdictions. The indicators show that EU and EEA banks have substantial exposure to corporates in sectors that highly contribute to climate change, with exposures above 70% in most countries. On physical risk, the average share of exposures in areas subject to elevated physical risk is below 30% in most countries, although disclosures reflect varying geographic granularity and institution-specific assessment methodologies. For exposures secured by immovable property, around half of EU real estate lending falls into the first two energy-efficiency buckets, below 200 kWh/m2 of collateral, while banks report extensive reliance on proxies and estimates for energy-efficiency data. The dashboard also reports taxonomy alignment metrics, including a Green Asset Ratio that is slightly below 3% on average with dispersion across banks and countries, alongside additional indicators intended to aid interpretation and capture green lending beyond EU Taxonomy criteria. The monitoring framework is developed under Article 29(f) of the EBA founding regulation and is built on Pillar 3 ESG data with reference dates of 31 December 2023 and 30 June 2024. The EBA plans to update and evolve the indicators over time, including potential adjustments as Pillar 3 disclosure templates are revised and as any changes to Green Asset Ratio-related requirements are reflected in future versions.
European Banking Authority 2025-04-25
European Banking Authority publishes ESG dashboard benchmarking EU and EEA banks’ climate risk exposures and green finance indicators
The European Banking Authority has launched an ESG dashboard to monitor ESG risks and provide access to climate risk indicators for the EU and EEA banking sector, based on banks’ Pillar 3 ESG disclosures. The dashboard reveals significant exposure to high climate-contributing sectors and varying physical risk levels, with taxonomy alignment metrics like a Green Asset Ratio averaging below 3%. Developed under Article 29(f) of the EBA founding regulation, the framework will evolve with updates to disclosure templates.