The EU's Corporate Sustainability Reporting Directive (CSRD) will gradually come into effect from 2024 onwards. The CSRD will require around 50,000 companies to disclose detailed information on sustainability matters. The initiative will address data gaps, which will also help to increase the reliability of climate stress tests. At the same time, the absence of granular data is no excuse for inaction. 4.
Conclusion Let me conclude. Climate scenarios and climate stress tests are not perfect yet and the results they provide have to be taken with a grain of salt. Nonetheless, they are already viable instruments for shedding light on the exposure and resilience of banks to climaterelated risks.