EC Updates Address Rules on Open Data and Sustainability Disclosures
The European Commission (EC) adopted disclosure rules on sustainable investments and is seeking information from member states on the adoption of the European Union rules on Open Data Directive (2019/1024).
EC has adopted a delegated regulation under the Sustainable Finance Disclosures Regulation (SFDR: 2019/2088), which sets out sustainability-related disclosure requirements for financial market participants, financial advisors, and financial products. The aim of the delegated regulation is to improve sustainability-related disclosures, enhance comparability of disclosures for end-investors, and reduce the occurrence of adverse sustainability impacts and greenwashing. The regulatory technical standards laid out in this delegated regulation require a mandatory reporting template to describe how principal adverse impacts on sustainability factors are taken into consideration in investment decisions. The regulatory technical standards also require a summary section and information on policies on the identification of principal adverse impacts, actions taken and planned to mitigate the principal adverse impacts (for instance, reduction of carbon emissions by means of engagement or other policies), or adherence to international standards and historical comparisons. The requirements set out in this delegated regulation are scheduled to apply from January 01, 2023 and will be subject to scrutiny by the European Parliament and the Council.
With respect to the Open Data Directive, EC seeks information from member states, including Belgium, Bulgaria, Czechia, Croatia, Hungary, Latvia, the Netherlands, Austria, Slovakia, and Sweden, about how European Union rules on open data and the reuse of public sector data are transposed in respective national laws. The transposition deadline expired on July 17, 2021 and, despite having received the letters of formal notice sent on September 30, 2021, the above member states have failed to communicate all their national measures. Thus, the European Commission may decide to refer the matter to the Court of Justice of the European Union. The Directive adopted on June 20, 2019 aims to unlock the benefits of data and helps to make more of the vast and valuable pool of data resources produced by the public sector available for reuse. The Directive will reduce barriers to market entry for small and medium enterprises through reduced costs for data reuse, make more data available, and increase business opportunities through data sharing via application programming interfaces (APIs). The Directive stimulates the development of innovative solutions such as mobility apps, increases transparency by opening the access to publicly funded research data, and supports new technologies, including artificial intelligence.
Related Links
- Notice on Delegated Regulation Under SFDR
- Delegated Regulation Under SFDR (PDF)
- Press Release on Open Data Directive
Keywords: Europe, EU, Banking, Reporting, ESG, Climate Change Risk, Open Data, Data Sharing, API, Artificial Intelligence, SFDR, Disclosures, Sustainable Finance, Regulatory Technical Standards, Open Banking, Open Finance, Regtech, EC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Previous Article
CBIRC and PBC Publish Updates for Financial Sector EntitiesRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
