Joint Guidelines on integrating ESG in supervisory stress test
- Status: Under consultation
The Joint Guidelines on integrating ESG in supervisory stress test are mandated by Capital Requirements Directive and the Solvency II Directive. They set out how competent authorities for the banking and insurance sectors should integrate environmental, social and governance (ESG) risks when performing supervisory stress tests. They aim to harmonise methodologies and practices among supervisors in banking and insurance, to ensure proportionality and to enhance the effectiveness and efficiency of ESG stress testing.