34. With regard to the assessment of social and governance risks at exposure level, institutions …

With regard to the assessment of social and governance risks at exposure level, institutions should implement due diligence processes with a view to assessing the financial impacts stemming from, and the vulnerability of counterparties’ business model to , social and governance factors, taking into account the adherence of corporate counterparties to social and governance standards such as those mentioned in paragraph 28 b(i), the exposure of the counterparty to litigation risk driven by social or governance issues, as well as the applicable legislation in the jurisdiction where the counterparty operates.

• b. Sector-based, portfolio-based and portfolio alignment methods

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/