The three European financial supervisory authorities - EBA, ESMA and EIOPA - and the European Central Bank (ECB) called on Monday 13 March, in a joint statement, for issuers, sponsors and originators of structured finance products to proactively collect comprehensive and high quality information on climate-related risks during their origination process.
According to the three European authorities and the Monetary Institute, additional data will allow investors to better identify climate change risks, while avoiding over-reliance on estimates from external sources. The lack of climate-related data on the assets underlying structured finance products not only poses a problem for the proper assessment and treatment of climate-related risks, but also hinders the classification of ‘sustainable’ under the Taxonomy Regulation (see other news item) and the Sustainable Finance Disclosure Regulation (SFDR) (see EUROPE 13121/5).
This call comes at a time when the authorities are committed to contributing, within their respective mandates, to the transition towards a more sustainable economy. ESMA, with input from EBA, EIOPA and the ECB, is working to improve disclosure standards for securitised assets by including new, proportionate and targeted information on climate change.
To read the statement: https://aeur.eu/f/5r6 (Original version in French by Anne Damiani)