Version in force , Modified +388 −417§
Amended by Regulation (EU) 2024/1623 32024R1623 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2024/2987 32024R2987 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2024/2795 32024R2795 on EUR-Lex (external, EUR-Lex)
dates removed: 2022-06-28
Explanation, written by a model and checked against the cited text
The scope of paragraph 1 changed from large institutions that have issued securities admitted to trading on a regulated market, with a starting date of 28 June 2022 and an initial annual then biannual disclosure frequency, to a broader reference to institutions generally, with no stated start date or frequency and instead a distinction drawn between environmental, social and governance risks and, for environmental risks, physical and transition risks.
The former paragraph 2 sentence on disclosure frequency was removed and replaced by a new paragraph 2 that lists specific items to be disclosed, namely the total amount of exposures to fossil fuel sector entities and how institutions integrate identified ESG risks into their business strategy, processes, governance and risk management.
Paragraph 3 on EBA's implementing technical standards remains textually unchanged between the two versions.
Cited: Art. 449a, v1 (external, EUR-Lex) · Art. 449a, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version, in force 9 July 2024 02013R0575-20240709 → this version, in force 1 January 2025 02013R0575-20250101
Article 449a
Disclosure of environmental, social and governance risks (ESG risks)
1. From 28 June 2022, large institutions which have issued securities that are admitted to trading on a regulated market of any Member State, as defined in point (21) of Article 4(1) of Directive 2014/65/EU, Institutions shall disclose information on ESG risks, including distinguishing environmental, social and governance risks, and physical risks and transition risks for environmental risks.
2. For the purposes of paragraph 1, institutions shall disclose information on ESG risks, as defined including:
(a) the total amount of exposures to fossil fuel sector entities;
(b) how institutions integrate the identified ESG risks in the report referred to in Article 98(8) of Directive 2013/36/EU.
The information referred to in the first paragraph shall be disclosed on an annual basis for the first year their business strategy and biannually thereafter. processes, and governance and risk management.
3. EBA shall develop draft implementing technical standards to specify uniform disclosure formats, as laid down in Article 434a, for ESG risks ensuring that they are consistent with and uphold the principle of proportionality while avoiding duplication of disclosure requirements already established in other applicable Union law. Those formats shall not require disclosure of information beyond the information to be reported to competent authorities in accordance with Article 430(1), point (h), and shall in particular take into account the size and complexity of the institution and the relative exposure of small and non-complex institutions subject to Article 433b to ESG risks.
Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph of this paragraph in accordance with Article 15 of Regulation (EU) No 1093/2010.