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EA Discussion paper

30 October 2020. EBA/DP/2020/03. EBA Discussion paper On management and supervision of ESG risks for credit institutions and investment firms EBA Discussion paper ON MANAGEMENT AND SUPERVISION OF ESG RISKS FOR CREDIT INSTITUTIONS AND INVESTMENT FIRMS. Contents Contents 2. List of figures 4. List of tables 5. Abbreviations 6. 1. Responding to this consultation 7. Submission of responses 7. Publication of responses 7. Data protection 7. 2. Executive Summary 8. 3. Background and rationale 11. Structure of the Discussion paper 15. Questions for consultation 17. 4. Common definitions of ESG factors, ESG risks and their transmission channels 20. Definition and general features of ESG factors 23. Definition of ESG risks 27. Environmental factors and environmental risks 29.

7.5 Assessment of risks to capital 132 7.5.1 Assessment of credit and counterparty risk 133 7.5.2 Assessment of the portfolio credit quality (with focus on loan origination) 135 7.5.3 Assessment of market risk 136 7.5.4 Assessment of operational risk 137 7.5.5 Risk identification, measurement, monitoring and reporting of social and

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