Legal & Regulatory News

EBA opinion on European Commission amendments to draft ITS on prudential disclosures on ESG risks under CRR

On 17 October 2022, the European Banking Authority (EBA) published an opinion paper (the Opinion) on the European Commission's amendments to the final draft Implementing Technical Standards (ITS) on prudential disclosures on environmental, social and governance (ESG) risks under Article 449a of Regulation (EU) 575/2013 (the Capital Requirements Regulation (CRR)). The EBA has been mandated to develop the draft ITS on this topic.

The Opinion considers a number of substantive and non-substantive amendments made by the European Commission to the ITS, including those relating to:

• the drafting of Article 18a(2) with regards to the disclosure of quantitative information on mitigating actions and exposures on climate-change-related risks associated with economic activities that qualify as environmentally sustainable;
• the drafting of Article 18a(2) with regard to the calculation of the banking-book taxonomy-aligned exposures towards SMEs and other Non-Financial Reporting Directive corporates counterparties; and
• aligning the ITS with Commission Delegated Regulation (EU) 2021/2178.

The Opinion confirms that the EBA has accepted the substantive and non-substantive changes to the draft ITS and have submitted the revised draft ITS to the European Commission.

Click here to view the Opinion.

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