Supervisory Perspectives on ESG and Sustainable Finance Initiatives
Explore supervisory perspectives on ESG, sustainable finance, transparency, disclosure, standards, and labels as outlined by regulatory bodies such as the EBA. Learn about efforts to promote sustainability in the banking sector, enhance transparency, and establish green standards and labels for financial products.
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Presentation Transcript
Supervisory perspectives on ESG Roberta De Filippis Policy expert on securitisation and covered bonds Trento EEMI BAUHAU week 14 February 2023
EBAs roadmap on sustainable finance EBA Roadmap sets out EBA s objective and approach in the area of sustainable finance and ESG Overall objective is to build an adequate framework for EU banks and their supervisors to mitigate ESG risks and support an orderly transition to a sustainable economy fostering resilience of the EU banking sector and broader economy ensuring a thorough but proportionate application facilitating convergence at EU and international levels through a holistic and sequenced approach 2 Source: https://www.eba.europa.eu/eba-publishes-its-roadmap-sustainable-finance
Transparency and disclosure The EBA is committed to promote transparency and robust disclosure requirements for financial institutions and financial products Work to date: Joint ESAs RTS on sustainability related disclosure for financial products in the context of the SFDR securitisation is not a financial product covered by the rules of the SFDR SECR includes the option for originators to disclose consideration of adverse impacts on sustainability factors of the assets financed by residential loans or auto loans and lease portfolios in the context of STS securitisation. Work in progress: Joint ESAs RTS on STS securitisations-related sustainability disclosures The RTS will enhance transparency and assist investors in measuring and comparing PAI on sustainability factors of the assets financed by the underlying exposures of STS securitisation. Consultation paper published in May 2022 3 ESAs are working to finalise the RTS by Q2 2023
Standards and labels The EBA contributing to the development of green standards and labels: Work to date:The EBA report on sustainable securitisation premature to establish a dedicated framework for green securitisation Adjustments to the EU GBS regulation proposed in case of securitisation: Use of proceeds requirements shifted from issuers to originators Additional disclosure requirements on the green characteristics of both the underlying exposures and assets of the originator Recommended to extend PAI disclosures also to non-STS Monitoring role of EBA of the green asset-backed security market Work in progress: CFA on the definition and possible supporting tools for green loans and green mortgages to households and SME borrowers 4 Survey launched on Monday (deadline 7 April 2023) Please Respond!
