ESG In The Banking Sector – Final EBA Guidelines On Environmental Scenario Analysis

On 5 November 2025, the European Banking Authority (EBA) published its final Guidelines on environmental scenario analysis (EBA/GL/2025/04) (Scenario Guidelines). The Scenario Guidelines address how institutions should use scenario analysis to test their resilience against environmental risks in the short, medium and long term.

Background

The Scenario Guidelines complement the EBA Guidelines on the management of environmental, social and governance (ESG) risks published on 9 January 2025 (Risk Guidelines) and the EBA Guidelines on institutions' stress testing.

The Scenario Guidelines aim to:

• detail the criteria for setting the scenarios that institutions should use to test their resilience to long-term negative impacts of ESG factors, particularly climate-related factors, in accordance with Article 87a(3) of Directive 2013/36/EU (CRD);