On 27 August, the European Commission (EC) published its final study on the development of tools and mechanism for the integration of ESG factors into the EU banking prudential framework and into banks’ business strategies and investment policuies.
The report looks into the integration of ESG risks within banks’ risk management processes and prudential supervision, examining current practices in this area with an identification of best practices.
The report shows that ESG integration is at an early stage and more works needs to be undertaken in order to accelerate the process. These actions could include enhancements are particularly required on ESG definitions, measurement methodologies, and associated quantitative indicators.
To view a copy of the report, please click here.