The EBA consults on draft templates and template guidance to prepare its one-off Fit-for-55 climate risk scenario analysis

EBA has initiated a public consultation on draft templates aimed at collecting climate-related data from EU banks. This endeavor is part of the Fit-for-55 climate risk scenario analysis, conducted in collaboration with other ESAs, the ECB, and the ESRB. The draft templates include guidelines for compiling data and definitions. The consultation period will extend until 11 October 2023.
The templates are designed to gather information on climate-related and financial aspects of credit risk, market risk, and real estate risk. Banks are required to report both aggregated and counterparty-level data as of December 2022. Collecting detailed counterparty data will aid in assessing concentration risks related to significant climate exposures and understanding amplification mechanisms and second-round effects. Aggregated data will provide a broader overview of climate-related risks within the banking sector. The templates provide specific guidance on data input, formatting, and reporting standards, catering to various sectors and aspects of climate risk.
After the consultation, EBA will initiate a data collection process in November 2023, supported by the SSM and other relevant authorities. Around 70 banks, the same ones involved in the 2023 EU-wide stress test, will participate, and additional banks may be included at the request of their respective competent authorities.
The Fit-for-55 climate risk scenario analysis, stemming from the EC’s Strategy for Financing the Transition to a Sustainable Economy (see eventid=11446), is slated to begin by the end of 2023. The results of this analysis are expected to be published by the first quarter of 2025.