The European Banking Authority has released its newest Environmental, Social and Governance risk dashboard, revealing that lenders across the bloc maintained steady transition and physical climate risk levels throughout the second half of 2025.
The findings point to incremental gains in the depth and accuracy of climate-related information banks rely on, with energy efficiency data for mortgage books singled out as an area of particular progress, a development the regulator says strengthens oversight of climate exposure within the sector.
Figures covering June to December 2025 show that the portion of bank exposures tied to sectors that contribute heavily to climate change held steady EU/EEA-wide at 62%. Although a handful of countries saw shifts in their exposure levels during this window, the bloc’s broader transition risk picture stayed consistent, with the same countries and banks carrying the largest exposures as before.
Mortgage lending patterns across energy efficiency bands also showed little movement. Exposures linked to highly efficient properties (those using no more than 100 kWh per square metre) edged upward, whereas both the share of mortgages lacking energy performance data and those relying on estimated scores dipped slightly. The EBA points to this as evidence that the quality and coverage of climate data used to evaluate mortgage books continues to strengthen gradually.
Banks’ vulnerability to physical climate risk was likewise largely unchanged across most EU/EEA countries. However, the gap between jurisdictions remains wide: average exposure levels range from under 10% in some markets to over 55% in others, a split the EBA attributes to differing geography, economic structures, sector mixes and how individual countries classify and measure risk.
Taken together, the authority’s data for the latter half of 2025 points to a banking sector with steady climate-related risk levels, alongside small but steady gains in the quality and availability of the data underpinning ESG reporting.
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