On 2 May, the European supervisory authorities EBA, EIOPA, and ESMA (the ESAs) published a consultation paper. This includes a draft regulatory technical standard (RTS) considering whether and to what extent ESG-data should be published.
In particular, the draft RTS considers the disclosure of Principal Adverse Impact (PAI) effects with regard to assets financed via STS securitisations. The draft RTS aims to provide guidelines and standards on how originators shall provide investors with reliable and comparable ESG-data presumably on a voluntary basis. Definitions, indicators or thresholds for the classification of STS securitisations as "sustainable securitisations" have already been addressed separately in an EBA report to the European Commission in early March (see TSI Securitisation and Regulation News of 2 March 2022) and are not the subject of this consultation.
The proposed RTS focuses on three questions:
- What are technical requirements for reliable and comparable ESG data from originators?
- Which ESG data related to sustainability strategies and underlyings should originators employ for their PAIs?
- How can consistency with the SFDR (Sustainable Finance Disclosure Regulation) be achieved in practice?
Comments should be orientated towards 19 questions raised in this consultation. Deadline for response is 2 July 2022. TSI will actively contribute to the consultation.
Please do not hesitate to contact TSI, if you have any questions or comments on this consultation.