FMA priorities for supervision in relation to sustainability

Since 2021, sustainability has been one of the Austrian Financial Market Authority’s (FMA) dedicated priorities for supervision and inspections. In addition to a structured dialogue with all stakeholders on sustainability issues, two specific thematic aspects of the FMA’s priorities have been able to be highlighted: on the one hand the appropriate integration of sustainability risks into strategy, governance and risk management of supervised entities (with a focus on resilience), and on the other hand observance of the necessary disclosure requirements regarding sustainable financial products, in order to reduce risks of greenwashing (with a focus on collection investor protection).

The FMA’s framework

The FMA has created a framework for its activities as part of a medium-term risk assessment for the next three years, based on six medium-term principles intended to guide its supervisory and inspection activities.

Risks in relation to the climate crisis and the biodiversity crisis and the necessary transformation towards a more sustainable economy will be afforded even greater priority in the future.

The FMA therefore urges that sustainability risks should be taken into account, while promoting market transparency and combating greenwashing.

Nachhaltigkeit: Schwerpunkte der Aufsichts- und Prüftätigkeit 2025

• Greenwashing and disclosure
• Sustainability risks and business models – climate stress tests
• Sustainability reporting

Further details about the FMA’s priority for supervision of sustainability can be found in the FMA’s annual “Facts and Figures, Trends and Strategies” publication.

The FMA’s Supervisory Activities in the area of Sustainable Finance

The management of sustainability risks, transparent disclosure of sustainability matters and the prevention of greenwashing are given particular priority and are addressed on a cross-sector basis within the FMA’s supervisory activities. By doing so, sustainable finance in integrated into its regular supervisory activities. The FMA and Oesterreichische Nationalbank (OeNB) jointly carry out these activities for prudential banking supervision under the statutory division of responsibilities.

The FMA reviews supervised entities’ appropriate management of sustainability and climate risks and conducts regular climate stress tests and analyses. The FMA publishes and updates supervisory guidance documents (FMA Guide on Dealing with Sustainability Risks) for the Austrian financial market to assist supervised entities in integrating risks arising from sustainability and climate factors into their risk management, strategy and governance.

The FMA reviews how supervised entities have implemented requirements for transition plans and transition planning within its scope. In this context, transition planning should be viewed as being comprehensive and as a “new risk management tool”.

The FMA check compliance with the rules governing sustainability-related disclosure in relation to supervised entities, financial instruments and financial products. The FMA takes action against possible Greenwashing  in the Austrian financial market, since fair, clear and not misleading information forms the basis for confidence in a functioning financial market.

The FMA reviews compliance with the provisions on sustainability-related distribution rules in the financial market that are intended to ensure that investors also get the financial products that meet their sustainability preferences.

The FMA continually monitors new financial market and regulatory developments about sustainable finance, thereby making a valuable contribution towards collective consumer protection by means of information, publications, and financial literacy initiatives.

Further information about the FMA’s activities in the area of sustainable finance can be found in the FMA’s Sustainable Finance Strategy.