The European Banking Authority (EBA) has published its latest Environmental, Social and Governance (ESG) risk dashboard, reporting continued stability across transition and physical climate risk indicators for EU and EEA banks during the second half of 2025.
According to the report, the proportion of bank exposures to sectors that significantly contribute to climate change held steady at 62% between June and December 2025 across the EU and EEA. While minor shifts occurred within specific national jurisdictions, the overall transition risk profile across the European banking sector remained uniform, with the most exposed institutions and countries staying largely unchanged.
The distribution of residential mortgage portfolios across energy efficiency categories also demonstrated stability. The proportion of highly energy-efficient mortgages—classified as those consuming 100 kWh/m² or less—recorded a slight increase. Concurrently, the share of mortgage exposures lacking energy performance information, alongside the reliance on estimated scores, declined marginally.
The EBA noted that these trends highlight gradual enhancements in the availability, accuracy, and reporting quality of climate-related data.
Exposures vulnerable to physical climate risks showed minimal movement across the majority of jurisdictions. However, substantial disparities persist between individual member states, where average exposure shares range from under 10% to over 55%. The authority attributed these geographic variations to differing regional economic structures, local climate risk exposure, and varying national risk assessment methodologies.
Overall, the EBA concluded that while climate risk exposures in the EU and EEA banking sector remained stable through the end of 2025, data quality and disclosure standards continue to show steady, incremental progress. The bi-annual dashboard utilizes bank ESG disclosures to track transition and physical vulnerabilities across the regional banking landscape.
