Integrating Social Risk into ESG Risk Materiality Assessments: Evolving Expectations and Practical Solutions
AdvisorySince the introduction of the European Central Bank (ECB) supervisory expectations for Climate-related & Environmental Risks, now Climate and Nature (C&N), formalised in the ECB Guide of November 2020 and the 2025 press release, the materiality assessment has served as a foundational requirement for integrating C&N risks into institutions’ enterprise-wide risk management frameworks. Over the past years, this early regulatory push ensured that the methodology for assessing climate risk materiality became both familiar and widely embedded across institutions.
