EU Climate Benchmarks and Benchmarks’ ESG Disclosures
In the action plan: financing sustainable growth, published in March 2018, the European Commission announced forthcoming measures to enhance the ESG transparency of benchmark methodologies and an initiative to put forward standards for the methodology of low-carbon benchmarks in the Union. To achieve these objectives, the action plan lists a series of actions which should be implemented by 2019. The Technical Expert Group (TEG) on sustainable finance was set up in July 2018 to assist the Commission in the implementation of the action plan and the proposed regulation on climate benchmarks.
Minimum Requirements for Climate Benchmarks and Benchmarks’ ESG Disclosures
On 18 June 2019, the TEG published its report on Climate Benchmarks and Benchmarks’ ESG Disclosures.
The report recommends a list of minimum standards for the methodologies of EU Climate Transition and Paris-aligned benchmarks addressing the risk of greenwashing, and disclosure requirements to improve transparency and comparability of information across benchmarks not only regarding climate-related information but also on a variety of ESG indicators.
Below please find the report and the 2-pager that summarises the key aspects of the report.
Call for feedback
The interim report is accompanied by a call for feedback that will be launched in the comind days and will be running until the end of July 2019.
Next Steps
Taking into account the feedback received, the TEG is expected to publish the final version of the report by the end of September 2019.
The final report will serve as a basis for the Commission for the drafting of delegated acts in accordance with the empowerments laid down in the amending regulation to Regulation (EU) 2016/1011.
Documents