The Commission's Technical Expert Group on Sustainable Finance published on Monday 30 September its final report on how to select companies eligible for inclusion in the two new benchmark categories, climate transition benchmarks and benchmarks aligned with the Paris Agreement, the creation of which was agreed by the co-legislators last February (see EUROPE 12202/12).
The report sets a series of minimum technical requirements, including a minimum relative decarbonisation of 30% for the first category of benchmark and 50% for the second. The two benchmarks should also exclude companies involved in the sale or manufacture of controversial weapons, companies that have been found guilty of violations of global standards or involved in controversies arising from significant negative impact on at least one of the six environmental objectives.
The final report also recommends a set of environmental, social and governance disclosure requirements for benchmark managers, including an assessment of alignment with the Paris Agreement for each benchmark, and a standard format to be used to present this information.
The group of experts had already published an interim report in June (see EUROPE 12277/20). The final report will serve as a basis to the drafting of delegated acts by the Commission which will detail the composition of the two benchmarks. The draft delegated acts will be subject to a formal 4-week public consultation by the Commission and are expected to be adopted mid- 2020.
See the report: http://bit.ly/2n3MtwX (Marion Fontana)