In this episode, we dive into the EBA Guidelines on ESG Risk Management and explore how they aim to support financial institutions in managing ESG risks across multiple sectors. These guidelines set minimum standards for identifying, measuring, managing, and monitoring environmental, social, and governance risks, and align with the new EU Banking Package. We discuss how ESG risks should be integrated into traditional financial risk categories, including credit, market, and liquidity risks, and how scenario analysis and transition planning are essential tools in the process.