MSCI in Practice: Supporting the implementation of the EBA Guidelines on the Management of ESG Risks
In January 2025, the European Banking Authority (EBA) published its final guidelines on the management of environmental, social and governance risks. These guidelines establish key requirements for credit institutions to effectively identify, measure, manage, and monitor sustainability risks, ensuring their resilience over the short, and long term.
An insightful webinar was held where Fabien Le Tennier from the EBA delivered a keynote focusing on the core objectives of the EBA Guidelines and shared the EBA's perspectives. Following the keynote, MSCI experts discussed the guidelines and showcased how MSCI’s climate and sustainability solutions could help align with the requirements.
This webinar provided a unique opportunity to hear directly from the EBA and gain practical insights into the application of the guidelines, including:
- Conducting materiality assessments using industry-specific data to pinpoint key risks and opportunities
- Evaluating vulnerability to physical climate hazards through exposure-based methods, illustrated by a flood risk example for real and private assets
- Identifying risk concentration through sector- and portfolio-based methods, highlighted by a nature impacts and dependencies example
- Integrating climate scenario-based methods over multiple time horizons in credit risk processes, including the calculation of climate-adjusted probabilities-of-default
This information is provided “as is” and does not constitute legal advice or any binding interpretation. Any approach to comply with regulatory or policy initiatives should be discussed with your own legal counsel and/or the relevant competent authority, as needed.
