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A regulatory review of banks’ ESG disclosure will blaze a trail to more consistent, comparable disclosure practices, says Moody’s Investors Service in a new report.

The rating agency said that a survey launched by the European Banking Authority (EBA), which runs until Oct. 16, will help the regulator understand banks’ current ESG risk disclosure practices, and their future plans for public disclosure in this area.

In turn, this research will inform its efforts to set technical standards for mandated disclosure of prudential information on ESG risks under global capital rules.

“The implementation of technical standards aims to provide transparency and consistency on how banks embed ESG risks into their organization,” Moody’s said.

“It will improve visibility and increase comparability of ESG risks, thus allowing banks to better manage their portfolios, a credit positive,” it added.

The EBA is expected to focus on climate change risks to start, Moody’s said.