The European Banking Authority (EBA) has published the latest edition of its ESG risk dashboard, incorporating data up to the second quarter of 2025.
The dashboard tracks banks’ exposure to climate-related risks and is intended to support institutions and supervisors in managing these risks. The latest update indicates continued stability across key climate risk indicators, broadly in line with previous reporting periods.
According to the EBA, banks’ exposures to sectors that significantly contribute to climate change remain high at around 62 per cent of their non-financial corporate portfolios. The Authority said this underlines the need for continued development of robust climate risk management tools and monitoring frameworks.
The report also highlights improvements in environmental data quality. Exposures secured by immovable property show strong energy efficiency scores, while banks’ reliance on proxy indicators has fallen by around 10 percentage points since December 2023, suggesting better data coverage and more reliable sustainability assessments.
Physical risk metrics, however, remain uneven across jurisdictions. The EBA noted that differences are likely driven by varying methodologies among institutions, reflecting the complexity of assessing physical climate risks across diverse European geographies and datasets.
