EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks. The survey aims to support the policy work of EBA on Pillar 3 disclosures and its wider efforts to develop a robust policy framework in the area of sustainable finance. The survey is addressed to institutions that will be required to disclose prudential information on ESG risks as per Article 449a of Capital Requirements Regulation (CRR). The inputs can be provided until October 16, 2020.
The survey consists of three parts:
- General questions on the current status of ESG disclosure. This part includes general questions on ESG issues. For the environmental aspects, the questions cover several initiatives such as the EBA action plan on sustainable finance, EU Taxonomy, and the non-binding guidelines of EC on reporting of climate-related information.
- Questions on the interaction between Pillar 3 disclosures and policy initiatives. The focus of these questions is the interaction of institutions’ current practices with other policy initiatives such as the non-financial reporting directive (NFRD) and the non-binding guidelines of EC on non-financial information, including the supplement on climate-related reporting.
- Forward-looking questions on the implementation of upcoming disclosure requirements under CRR. These questions focus exclusively on climate change, including transition and physical risks, and cover aspects on exposure classification, metrics, and data availability.
The feedback to the survey will be used to inform and support the development of the implementing technical standards on Pillar 3 disclosures on ESG risks. The disclosure of information on ESG risks is one of the key components in the policy framework for sustainable finance. The survey will help EBA to understand the type of actions institutions are implementing following the policy messages and expectations on disclosures included in the EBA action plan on sustainable finance (published in December 2019), including the disclosure of a green assets ratio. In parallel, ESAs are preparing to launch a joint survey seeking public feedback on presentational aspects of financial products that promote environmental and/or social characteristics or have a sustainable objective.
Keywords: Europe, EU, Banking, ESG, Climate Change Risk, Disclosures, Pillar 3, CRR, Sustainable Finance, Reporting, NFRD, Basel, EBA
Previous ArticleRBNZ Releases Results of COVID-19 Stress Test on Largest Banks
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.