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

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793