Featured Product

    ESMA Responds to Proposal on Guidelines on Climate-Related Disclosures

    March 26, 2019

    ESMA issued a comment letter to EC, welcoming its proposal to update the non-binding guidelines on non-financial reporting with the introduction of a specific supplement addressing climate-related disclosures. ESMA made some recommendations on how the guidelines can be further developed to promote higher quality disclosures.

    On February 20, 2019, EC consulted on update of the non-binding guidelines on non-financial reporting. ESMA recommends the EC to ensure that when reviewing the guidelines, an appropriate balance is achieved across requirements relating to the various non-financial matters, with the aim to avoid the issue that focus on a specific matter, such as climate change, detracts from attention to the necessary disclosures on the other non-financial matters. While generally supporting the proposals in the consultation document, ESMA would like to highlight the following key areas where the proposed approach to update the guidelines could be further improved:

    • While ESMA welcomes the EC clarification on how the notion of materiality in the Non-Financial Reporting Directive (NFRD), as transposed into local law, should apply to climate-related disclosures, it believes that the clarifications included in the consultation would also be beneficial for the main text of the guidelines. Therefore, ESMA encourages EC to incorporate these clarifications into the existing section of the guidelines relating to material information.
    • The consultation document proposes to structure the climate-related requirements into "Type 1" and "Type 2" disclosures, wherein Type 1 disclosures would represent more basic or minimum disclosures that issuers are expected to provide in all cases in which climate-related matters are material, while Type 2 disclosures would only be intended to provide more enhanced information. ESMA recommends expanding the disclosures that are currently proposed as Type 1 with some of the requirements that are currently only classified as Type 2 (detailed suggestions in this regard are proposed in the Annex to the comment letter). In addition, ESMA suggests considering the applicability of the proposed structure to the other disclosure requirements in the guidelines.
    • ESMA, building on the enforcement experience of non-financial statements, highlights additional areas for improvement related to the NFRD. In its view, without an increase in the specificity of the requirements in the NFRD, any amendment to the guidelines, even if helpful, is unlikely to result in a significant shift toward more consistent and enforceable non-financial reporting.

     

    Related Links

    Keywords: Europe, EU, Banking, Securities, Sustainable Finance, Non-Financial Reporting, Climate-Related Disclosures, Non-Binding Guidelines, EC, ESMA

    Related Articles
    News

    HKMA Revises Implementation Schedule for Initial Margin Rules

    HKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives.

    August 16, 2019 WebPage Regulatory News
    News

    HKMA Revises Guideline on Application of Banking Disclosure Rules

    HKMA issued a revised version of the Supervisory Policy Manual module CA-D-1 on guideline on the application of the Banking (Disclosure) Rules (BDR).

    August 16, 2019 WebPage Regulatory News
    News

    ECB Decision on Recognizing Reporting Member States Under AnaCredit

    ECB has finalized the Decision 2019/1348 (ECB/2019/20) that establishes procedure for recognizing non-euro area member states as reporting member states under the AnaCredit Regulation (EU 2016/867).

    August 16, 2019 WebPage Regulatory News
    News

    FASB Proposes to Extend CECL Standard Deadline for Certain Entities

    FASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    IASB Adds Phase Two of IBOR Reform to Its Work Plan

    IASB (or the Board) has added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—interbank offer rate (IBOR) reform—to its work plan.

    August 15, 2019 WebPage Regulatory News
    News

    FED Updates Draft Instructions for Proposed FR Y-14 Reporting Forms

    FED updated draft instructions for the monthly, quarterly, and annual capital assessments and stress testing reports, also known as forms FR Y-14M, FR Y-14Q, FR Y-14A, respectively.

    August 15, 2019 WebPage Regulatory News
    News

    FASB Proposes Taxonomy Changes Related to Topics 326, 815, and 842

    FASB is proposing taxonomy improvements for the proposed Accounting Standards Update on clarifying the interactions among topic 321 on investments in equity securities), topic 323 on investments under equity method and joint ventures), and topic 815 on derivatives and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    OCC Updates Bank Accounting Advisory Series in August 2019

    OCC released an update to the Bank Accounting Advisory Series (BAAS), which reflects accounting standards issued by FASB, through March 31, 2019, on topics such as hedging and credit losses.

    August 15, 2019 WebPage Regulatory News
    News

    APRA Consults on Final Phase Margin Rules for Uncleared Derivatives

    APRA is consulting on amendments to the prudential standard CPS 226 on margin and risk mitigation requirements for non-centrally cleared derivatives.

    August 14, 2019 WebPage Regulatory News
    News

    APRA Applies Additional Capital Requirement for an Australian Insurer

    APRA decided to apply an additional $250 million capital requirement to Allianz Australia Limited to reflect the issues identified in the risk governance self-assessment by the insurer.

    August 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3646