In the action plan: financing sustainable growth, published in March 2018, the European Commission announced forthcoming measures to enhance the ESG transparency of benchmark methodologies and an initiative to put forward standards for the methodology of low-carbon benchmarks in the Union. To achieve these objectives, the action plan lists a series of actions which should be implemented by 2019. The Technical Expert Group (TEG) on sustainable finance was set up in July 2018 to assist the Commission in the implementation of the action plan and the proposed regulation on climate benchmarks.
On 18 June 2019, the TEG published its report on Climate Benchmarks and Benchmarks’ ESG Disclosures.
The report recommends a list of minimum standards for the methodologies of EU Climate Transition and Paris-aligned benchmarks addressing the risk of greenwashing, and disclosure requirements to improve transparency and comparability of information across benchmarks not only regarding climate-related information but also on a variety of ESG indicators.
Below please find the report and the 2-pager that summarises the key aspects of the report.
More on the interim report:
- Press release
- Interim report on EU Climate Benchmarks and Benchmarks’ ESG Disclosures
- Summary of the interim report on EU Climate Benchmarks and Benchmarks’ ESG Disclosures
- Factsheet: Financing sustainable growth
Call for feedback
The interim report was accompanied by a call for feedback that ran until the end of July 2019.
Below you can check the responses that were submitted during this call for feedback:
On 30 September 2019, the TEG published its final report on Climate Benchmarks and Benchmarks’ ESG Disclosures.
The final report recommends a list of minimum technical requirements for the methodologies of ‘EU Climate Transition’ and ‘EU Paris-aligned’ benchmarks, with the objective to address the risk of greenwashing. The report also recommends a set of Environmental, Social and Governance (ESG) disclosure requirements, including the standard format to be used for the reporting. Those aim to improve transparency and comparability of information across all benchmarks.
Below please find the report and the 2-pager that summarises the key aspects of the final report.
The final report will serve as a basis for the Commission for the drafting of delegated acts in accordance with the empowerments laid down in the amending regulation to Regulation (EU) 2016/1011.
More on the final report:
- Press release
- Final report on EU Climate Benchmarks and Benchmarks’ ESG Disclosures
- Summary of the final report on EU Climate Benchmarks and Benchmarks’ ESG Disclosures
On 20 December 2019, the Technical Expert Group on Sustainable Finance (TEG) published a Handbook on Climate Benchmarks and benchmarks’ ESG disclosures. The Handbook follows on the publication of the TEG final report on Climate benchmarks that was published on 30 September 2019. The aim of the Handbook is to clarify those recommendations put forward by the TEG and to respond to frequently asked questions from the market.