The European Banking Authority (EBA) has published a new report assessing how financial institutions are sourcing and using ESG data to identify and measure associated risks.
While the findings show that banks and investment firms are making progress, the EBA also points out some persistent challenges, especially in accessing reliable, comparable, and granular data. This is key for risk management and aligning with the EU’s sustainable finance agenda.
The report supports the development of a stronger data infrastructure, clearer regulatory expectations, and more guidance to help financial institutions bridge existing gaps.