Financial institutions will be required to adhere to minimum standards and reference methodologies for the identification, measurement, management, and monitoring of ESG risks under guidelines for ESG risk management released by the European Banking Authority (EBA).

The Basel Committee on Banking Supervision (BCBS), the global body that sets the basis for banking prudential rules globally, has proposed a new set of metrics which could require banks and financial institutions globally to make more detailed climate-related financial risk exposures to market participants. The proposed changes could consider qualitative and quantitative disclosures as to how banks are managing these risks in various sectors and could be mandatory to facilitate comparability across banks.