EU banks hold 62% of loans in climate-impactive sectors, says watchdog

EU banks hold 62% of loans in climate-impactive sectors, says watchdog
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European banks’ exposure to sectors that significantly contribute to climate change stayed at around 62% in the second quarter of 2025, according to the European Banking Authority’s latest ESG risk dashboard.

The dashboard compiles data from a sample of nearly 120 large banks across the EU and European Economic Area, with results shown at country level and at anonymised bank level, the European Banking Authority announced on Wednesday.

Banks’ reliance on proxy indicators — stand-ins used when direct environmental data are missing — fell by about 10 percentage points compared with December 2023, alongside overall improvements in environmental data quality.

Exposures secured by immovable property showed strong energy-efficiency scores.

Data variability across countries

Measures of physical climate risk — such as exposure to hazards linked to extreme weather — continued to vary across jurisdictions, with the European Banking Authority citing methodological differences between institutions.

The dashboard has been incorporated into the European Banking Authority’s Data Access Portal, its central hub for supervisory data in the EU and EEA.

Some sections have not been updated beyond fourth-quarter 2024 data following an EBA “no-action” letter issued on 5 August 2025 on the application of ESG disclosure requirements, the authority said.


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