The exercise comprises three modules of increasing complexity, the last of which – for the biggest and most well-equipped intermediaries – requires banks to draw up projections for their financial and profitability situation under various climate-related scenarios, including very severe ones. Given the current unavailability of data, exposures towards small and medium-sized enterprises will be excluded from 13  the exercise.
Looking ahead, however, smaller firms will also have to provide intermediaries with detailed information about their carbon footprint in order to continue to have access to bank lending with no penalties.