24. Competent authorities are encouraged to continue their efforts and research to gradually extend …

Competent authorities are encouraged to continue their efforts and research to gradually extend the coverage toother ESG factors in the implementation of ESG stress tests, initially prioritising environmental risks. In a first phase, competent authorities should focus on climate and environmental risks, addressing both physical risks (e.g., extreme weather events, biodiversity loss) and transition risks (e.g., policy shifts, market re-pricing) aiming to distinguish impacts, even if indirect, on the main risk exposures.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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