48. For ESG stress tests, competent authorities should start by using a static balance sheet …

For ESG stress tests, competent authorities should start by using a static balance sheet approach, which is commonly applied in traditional stress tests. However, they may consider the structural impacts of financial entities’ transition plan, where feasible and applicable, depending on the time horizon.

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/