The ESAs (EBA, EIOPA, and ESMA) have launched a public consultation on draft Joint Guidelines for ESG stress testing. These guidelines aim to standardize how banking and insurance sectors integrate environmental, social, and governance risks into supervisory stress tests. Key aspects include:

• ESG Stress Testing Framework: Establishes a common approach for developing methodologies and standards across the EU's financial system.
• Guidance on Stress Tests: Covers design, features, and organizational arrangements, including expertise, data management, and scenario analysis timelines.
• Long‑term Approach: Accommodates future advancements and data improvements, promoting consistency and effectiveness.

The consultation runs until September 19, 2025, allowing stakeholders to provide feedback on the draft guidelines.