ECB and ESAs call for harmonised climate-related disclosure in structured finance
Published: 14 March 2023
The European Central Bank (ECB) and the European Supervisory Authorities (ESAs) have published a Joint Statement calling for the development of harmonised data requirements in climate-related disclosures for structured finance products. The ECB and the ESAs emphasise:
- The need for improved climate-related metrics by stating that securitisation transactions are commonly backed by assets exposed to climate-related risks; and
- The lack of climate-related data that hinders both investors’ ability to identify climate-related risks and understand the classification of products and services as sustainable under the EU Taxonomy and SFDR frameworks.
The Statement provides details on the current ECB and ESAs regulatory pipeline to promote robust climate-related disclosure requirements and avoiding fragmented information that increases costs and risks for originators, investors and supervisors. The ECB and ESAs also encourage originators and sponsors to collect the climate-related data needed by investors, even if there are no mandatory disclosure requirements in place yet.
For more information, please contact Guillermo Pérez Molina, Private Credit Associate.