EBA intends to put banks’ green projects under scrutiny. Action plan on sustainable finance was published

The European Banking Authority (EBA) published its Action plan on sustainable finance outlining its approach and timeline for delivering mandates related to environmental, social and governance (ESG) factors.

The Action plan explains the EBA’s sequenced approach, starting with key metrics, strategies, risk management and moving towards scenario analysis and evidence for any adjustments to risk weights. The Action Plan also aims to communicate key messages on the EBA’s policy direction and the expectations from financial institutions on areas where action is needed now to support the move towards more sustainable finance in the EU.

This article provides further insight on the timeline and milestones of the EBA’s work on sustainable finance.