Sustainable finance

Sustainable finance aims at integrating Environmental, Social or Governance (ESG) criteria into financial services, and at supporting sustainable economic growth. It also aims at increasing financial actors' awareness and transparency about the need to mitigate ESG risks via an appropriate management, considering in particular the longer-term nature of such risks and the uncertainty on their valuation and pricing.

In March 2018, the European Commission published its Action plan on Financing Sustainable Growth, setting an EU strategy on sustainable finance and a roadmap for future work across the financial system. On the back of this plan, the EBA prepared its own work plan and identified its key priorities. These include considerations on how ESG can be incorporated into the regulatory and supervisory framework of EU credit institutions. The EBA also has an important role in monitoring  market practices related to sustainability, and engaging with relevant stakeholders and the industry.

The sections below include relevant news and events related to the EBA's involvement in sustainable finance as well as any publication on this topic.

 

News and events
  • On 4 April 2019, the EBA and the European Banking Federation held a workshop on sustainable finance. This workshop highlighted the willingness of EU supervisors, regulators and banks to move forward on the various challenges related to sustainable finance and engage in a structured dialogue for incorporating sustainability into EU banks' frameworks and risk management.

    Click here to access the agenda
    Click here to access the presentations
    Click here to access the summary

  • In December 2018, the EBA joined the Network for Greening the Financial System (NGFS) , i.e. a network of central banks and supervisors whose purpose is to help strengthen the global response required to meet the goals of the Paris agreement  and to enhance the role of the financial system to manage environmentally and climate-related risks.