Structured products could face indirect impact as ESG risk frameworks influence pricing and hedging
Europe’s financial regulators have taken a key step in embedding sustainability into financial risk assessment, publishing final joint guidelines on ESG stress testing. The guidelines provide a principles-based framework for integrating ESG risks into stress testing The European Supervisory Authorities (ESAs) – the EBA, Eiopa and Esma – developed the guidance under mandates in the Capital Requirements Directive (CRD) and the Solvency II Directive, aiming to harmonise how en