(17)Risks stemming from climate change and broader environmental issues are changing the risk picture for the financial sector and are expected to become even more prominent. Considering the importance of those risk drivers, competent authorities should verify that institutions consider those risk drivers in their stress testing programmes referred to in Article 325bi(1), point (g), Regulation (EU) No 575/2013. In that context, institutions have already taken steps to include environmental risks in their stress testing programmes. However, to ensure that institutions have sufficient time to fully reflect those risks in their stress testing programmes, competent authorities should assess compliance of institutions with any requirements related to climate change and broader environmental related aspects only as of 1 January 2025. Similarly, in light of the complexity of the implementation of the expected shortfall direct backtesting, institutions should be given an additional period before competent authorities assess their compliance in this area. Hence, the related date of application of the assessment should be set to start as of 1 January 2026.