EBA launches an ESG dashboard to provide centralised, comparable climate risk indicators for the EU/EEA banking sector, focusing on transition risks, green financing, and low green asset ratios

The dashboard reveals a significant exposure of EU/EEA banks to sectors that contribute heavily to climate change, raising concerns over potential transition risks as these companies may be impacted by policy changes, technological shifts, or evolving consumer preferences. While physical risks are somewhat lower, with most countries showing exposures below 30%, the dashboard emphasizes the growing importance of monitoring…