Transition risk losses alone unlikely to threaten EU financial stability, "Fit-For-55" climate stress test shows

November 19, 2024--The European Supervisory Authorities (EBA, EIOPA, and ESMA-the ESAs) together with the European Central Bank (ECB), today released the results of the one-off "Fit-For-55" climate scenario analysis.
Under the scenarios examined, transition risks alone are unlikely to threaten financial stability. However, when transition risks are combined with macroeconomic shocks, they can increase losses for financial institutions and may lead to disruptions.

This calls for a coordinated policy approach to financing the green transition and the need for financial institutions to integrate climate risks into their risk management in a comprehensive and timely manner.

Objectives

The European Commission invited the ESAs and the ECB to assess the impact on the EU banking, investment fund, occupational pension fund and insurance sectors of three transition scenarios incorporating the implementation of the Fit-for-55 package, as well as the potential for contagion and amplification effects across the financial system.

Columbia Threadneedle Investments expanding US active ETF range to Europe

May 19, 2025--A 'natural expansion' for the firm
Columbia Threadneedle Investments is set to expand its active ETF offering to the European market as it looks to branch out from its existing US range.