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ECB enforcement on climate and environmental risks: ABANCA periodic penalty payments for failure to conduct materiality assessment under SSM Regulation, distinction from pecuniary sanctions, and implications for credit institutions

Published on: 27 November 2025

Published by a LexisNexis Ireland - Banking & Financial Services expert
Legal News
Article summary

On 10 November 2025, the ECB revealed it had levied periodic penalty payments totalling €187,650 on ABANCA, a credit institution headquartered in Spain. The sanction arose from ABANCA’s non-compliance with a requirement in an ECB decision directed to ABANCA on 1 December 2023. That decision obliged ABANCA to carry out, by a defined deadline, a materiality assessment of its climate-related and environmental (C&E) risks. As part of this assessment, ABANCA had to strengthen how it identifies the material C&E risks to which it is, or could be, exposed. ABANCA did not properly perform the materiality assessment in the manner specifically required by the ECB decision for a period of 65 days as set out in the decision...

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