EU bank climate risk exposures remain stable at 62 percent

Between June and December 2025, the share of EU and EEA bank exposures to carbon-intensive sectors remained unchanged at 62 percent.

Transition risk profiles stayed consistent across jurisdictions, with the most exposed institutions and countries showing little shift.

In mortgage portfolios, the proportion of highly energy-efficient loans rated at 100 kilowatt-hours per square meter or lower rose slightly.

Concurrently, the share of mortgage exposures lacking energy performance information declined alongside a drop in estimated energy scores.

Physical climate risk exposures also held steady across most member states, although regional cross-border variations persisted widely, ranging from below 10 percent in some jurisdictions to over 55 percent in others due to geographic differences.

The European Banking Authority uses its ESG risk dashboard to monitor climate vulnerabilities using standardized disclosure data across the EU and EEA banking sector.

By evaluating both transition and physical risks, the framework provides supervisors with a clear view of environmental exposures and reporting gaps.

National exposure spreads ranging from below 10 to above 55 percent reflect economic structural differences and varied risk classification methodologies.

Incremental reporting gains indicate regulatory pressure is steadily improving portfolio data availability for European banks.