Climate risk indicators stable in latest EBA dashboard update
The European Banking Authority (EBA) today published its latest ESG risk dashboard, integrating data up to the second quarter of 2025. The update confirms continued stability across major climate-related risk indicators.
Banks' climate exposure remains high
The EBA's latest ESG risk dashboard, integrating data up to Q2 2025, confirms continued stability across major climate-related risk indicators.
Despite this, banks' exposures to sectors significantly contributing to climate change remain elevated at around 62%.
This highlights the importance of climate-sensitive industries in their non-financial corporate portfolios and the need for robust climate risk management tools.
Environmental data quality shows improvement, with reliance on proxy indicators declining by approximately 10 percentage points since December 2023. This signals better data coverage and more reliable sustainability assessments.
Additionally, exposures secured by immovable property demonstrate strong energy-efficiency scores, providing a clearer view of specific climate risks.
Measuring physical risk remains complex
Physical risk metrics presented in the dashboard remained heterogeneous across jurisdictions.
This variability is likely due to methodological differences among institutions, underscoring the inherent complexity of measuring physical risk across diverse European geographies and datasets.
This edition of the ESG Risk Dashboard now becomes part of the EBA's Data Access Portal (EDAP), serving as the central hub for supervisory data in the EU/EEA.
This integration marks a significant step forward in transparency and accessibility, allowing users to access all supervisory data tools within a single, integrated environment.
The dashboard aggregates data from a representative sample of nearly 120 large EU/EEA banks, ensuring comparability through Pillar 3 ESG disclosure requirements.
Stability masks underlying challenges
While the dashboard reports stable climate risk indicators, the persistent 62% exposure to carbon-intensive sectors suggests a lack of significant de-risking.
The noted heterogeneity in physical risk metrics further indicates that a comprehensive, comparable understanding of these risks is still elusive.
This update, therefore, serves more as a status quo report than a signal of substantial progress in mitigating core climate-related financial vulnerabilities.