The EBA recommends enhancements to the Pillar 1 framework to capture environmental and social risks
Taking a risk-based approach, the Report assesses how the current prudential framework captures environmental and social risks.
- Taking a risk-based approach, the Report assesses how the current prudential framework captures environmental and social risks.
- It recommends targeted enhancements to accelerate the integration of environmental and social risks across the Pillar 1.
- In particular, the EBA is proposing to:
Taking a medium-to-longer term perspective, the Report also presents possible revisions of the Pillar 1 framework reflecting the growing importance of environmental and social risks. - These include:
Alongside other policy initiatives outside the prudential framework, the EBA will continue to strengthen the integration of environmental and social risks across all pillars of the regulatory framework.