Legal & Regulatory News

European Commission adopts amendments to ITS on prudential disclosures for ESG risks covered under CRR

On 30 November 2022, the European Commission adopted Implementation Regulation (EU) 2021/637 (the Regulation), amending the implementing technical standards (ITS) for the disclosure of environmental, social and governance risks under the Capital Requirements Regulation (CRR).

The Regulation, sets out requirements that large financial institutions, with securities traded on a regulated market of any EU member state, publicly disclose any prudential information pertaining to their physical or transitional ESG risks on initially an annual and then biannual basis.

The adopted amendments to the ITS now include updated and additional uniform disclosure tables and templates, as well as an associated set of instruction, in Annex 1 and 2 respectively, for how institutions must disclose their ESG risks in order to comply with the CRR.

The Regulation will enter into force 20 days following its publication in the Official Journal of the European Union.

Click here to view the regulations.