New EBA guidelines on environmental scenario analysis
On 5 November 2025, the EBA published guidelines on environmental scenario analysis on its website. What is worth knowing?
Two pillars of the analysis
The guidelines focus on two complementary pillars – (i) the integration of environmental risk into the existing stress-testing frameworks and (ii) resilience analysis.
Purpose of the guidelines
The purpose of the guidelines is to improve institutions’ ability to assess and manage environmental risk, and the aspects referred to in point 1 are intended to help institutions more effectively incorporate environmental risks into risk-management processes and strategic planning.
Relevance of environmental scenarios
To ensure maximum relevance of environmental scenarios, institutions should take into account factors such as the socio-economic context, technological developments, and consumer preferences.
Climate risk
Additional factors to be considered when assessing climate risk were also identified, including climate policy, energy systems, and the level of emissions and its impact on the climate.
Effective date
The guidelines will apply from 1 January 2027.
