Article 87a 4.

Competent authorities shall assess and monitor the development of institutions’ practices concerning their ESG strategies and risk management, including the plans that include quantifiable targets and processes to monitor and address the ESG risks arising in the short, medium and long term, to be prepared in accordance with Article 76(2). That assessment shall take into account the institutions’ sustainability-related product offerings, their transition finance policies, related loan origination policies, and ESG-related targets and limits. Competent authorities shall assess the robustness of those plans as part of the supervisory review and evaluation process.