The ESAs’ new ESG stress testing guidelines create the first unified EU framework for integrating environmental, social, and governance risks into supervisory stress tests, with application starting in 2027.

The ESAs’ new ESG stress testing guidelines create the first unified EU framework for integrating environmental, social, and governance risks into supervisory stress tests, with application starting in 2027.

On 9 February 2026, the European Commission adopted two secondary instruments under the Ecodesign for Sustainable Products Regulation (ESPR) to operationalise the rules on unsold consumer products. This reference summarises both acts for compliance teams, legal advisers and ESG analysts. C(2026) 659 final Delegated Regulation Derogations from the prohibition of…

A comprehensive guide to the obligations under Articles 24 and 25 of Regulation (EU) 2024/1781, the Delegated Regulation on derogations, and the Implementing Regulation on disclosure format — for enterprises, compliance teams, and ESG professionals. 0 Product categories covered by disclosure CN code groups 0 Derogations from the destruction ban…

The EU-wide stress test is conducted every two years, with the next exercise expected in 2027. For financial institutions in or near the EBA sample, preparation should begin well before the formal launch. The 2025 results highlighted several areas where banks need to strengthen their capabilities — and supervisors have…

The adverse scenario is the core of every EU-wide stress test. It defines the hypothetical crisis that banks must withstand — and its severity determines how much capital they need to hold. For the 2025 exercise, the ESRB and ECB designed a scenario centred on escalating geopolitical tensions, trade fragmentation,…

On 1 August 2025, the European Banking Authority published the results of the 2025 EU-wide stress test. The headline finding: European banks are resilient. Despite absorbing €547 billion in cumulative losses over a three-year adverse scenario driven by geopolitical escalation and trade fragmentation, the EU banking system maintained a CET1…

The 2025 EU-wide stress test introduced a granular sectoral dimension that is often overlooked in headline coverage. Alongside the aggregate GDP and capital figures, the ESRB and ECB published a detailed breakdown of real gross value added (GVA) impacts across 16 NACE economic sectors for each of the 27 EU…

ESG reporting is the practice of disclosing data on a company’s environmental, social, and governance performance to investors, regulators, and other stakeholders. What began as a voluntary transparency exercise has become a regulatory obligation for thousands of companies worldwide — and a critical input for investment analysis, risk management, and…

Environmental, Social, and Governance investing — commonly known as ESG investing — is an approach to capital allocation that incorporates non-financial factors into investment analysis and decision-making. Rather than evaluating companies solely on revenue, margins, and growth, ESG investors assess how businesses manage environmental risks, treat their workforce, and govern…