The European Banking Authority, the EU watchdog responsible for banking sector oversight, has released its newest Environmental, Social and Governance risk dashboard, pointing to steady climate risk indicators across the bloc alongside gains in the quality of climate data collected by lenders.
The dashboard, covering the second half of 2025, found that banks’ exposure to sectors that contribute significantly to climate change held steady at 62% across the EU and European Economic Area. Only a small number of jurisdictions saw any shift in their exposure levels during the period, and the countries and banks with the highest exposure remained the same as before.
Mortgage lending data also pointed to consistency, with the spread of exposures across different energy efficiency bands staying largely the same. The proportion of mortgages rated as highly energy-efficient, defined as 100 kWh per square metre or below, ticked up slightly, while the share of mortgages lacking energy performance data, along with those relying on estimated scores, edged down. The EBA said this reflects continuing progress in how banks gather and report the data underpinning climate risk assessments of their mortgage books.
Exposure to physical climate risks, such as flooding or extreme weather, was largely unchanged across most member states, though the gap between countries remains wide. Average exposure levels ranged from under 10% in some jurisdictions to more than 55% in others, a spread the EBA attributed to differing geographic, economic and sectoral conditions, as well as variation in how individual countries classify and measure risk.
Taken together, the EBA’s findings suggest the EU/EEA banking sector’s climate-related risk profile stayed steady through the second half of 2025, while the underlying data used to monitor that risk continued to improve incrementally.
Copyright © 2026 RegTech Analyst
Copyright © 2018 RegTech Analyst
