EBA Reports Stable Climate Risk and Better ESG Data

EBA ESG Risk Dashboard Shows Stable Climate Risk Exposures and Better Data Quality

The European Banking Authority has published its latest ESG Risk Dashboard, presenting climate-related risk indicators for large and listed EU institutions based on data up to December 2025.

The dashboard shows that banks’ climate risk exposures remained broadly stable between June and December 2025.

Key findings include:

🔹 62% of exposures remained directed towards sectors that contribute significantly to climate change.

🔹 Banks’ overall transition risk profile remained stable, despite some changes across individual economic sectors.

🔹 The share of mortgage exposures secured by highly energy-efficient properties increased slightly.

🔹 The proportion of mortgage exposures without energy performance information or based on estimated energy performance scores declined, indicating continued improvement in climate-related data availability and quality.

🔹 Physical risk indicators remained broadly stable, although exposures continued to vary significantly between countries due to geographical and economic differences and varying risk-assessment practices.

The results indicate gradual progress in ESG data quality. However, the continuing concentration of exposures in climate-relevant sectors confirms that climate risk remains a material consideration for banks’ risk management and supervisory assessment.