2 Amendments of Sirpa PIETIKÄINEN related to 2016/0360A(COD)

Proposal for a regulation
Article 1 – paragraph 1 – point 116

Regulation (EU) No 575/2013
Article 449 a (new)

Article 449a Disclosure of the ESG-related risks in annual report 1. From... [3 years after entry into force of this Regulation], institutions disclose the following information on material Environmental, Social and Governance (ESG)-related risks in accordance with Article 84a of Directive 2013/36/EU and, for climate-related risks, in accordance with the recommendations of the Task Force on Climate-related Financial Disclosure: (a) A description of the specific problems relating to material ESG risks, which could arise in the short, medium, or long-term and could have a material or financial impact on the institution, and whether these are physical or transition risks; (b) A description of the processes that are used to determine which risks could have a material or financial impact on the institution and how these are integrated into the overall risk management; (c) A description of significant concentrations of credit exposures against carbon-related assets, if these are material; (d) A description of the impact of material ESG-related risks on the business, strategy and financial planning of the institution, if these are material; (e) A description of the processes that the institution uses to identify, evaluate and manage risks; (f) The parameters that the institution used to evaluate the impact of short-, medium- and long-term climate-related risks on lending and financial intermediary services, if these are material; (g) A description of the role of the board with regard to the evaluation and management of climate-related risks. (h) For climate-related risks, as per the recommendations of the Task Force on Climate-related Financial Disclosure and the Article 2c of the Paris Agreement, a forward-looking scenario analysis disclosing how the lending portfolio aligns with the Paris Agreement’ objective of limiting global warming well below 2°C.

2018/02/05
Committee: ECON

Sirpa PIETIKÄINEN

Proposal for a regulation
Article 1 – paragraph 1 – point 127

Regulation (EU) No 575/2013
Article 501 d a (new)

Article 501da Support factor for green assets and disincentive factor for brown assets 1. Risk-weighted exposure amounts for green exposures, used for a unit that exists or was created to finance, refinance or operate green assets as described in paragraph 3, shall be adjusted in accordance with the following formulae: (i) if E' <= EUR 1 500 000, RW*=RW 0.7612; (ii) if E' > EUR 1 500 000, RW* = min {RW; EUR 1500 000} * 0.7612 + max {0; RW – 1 500 000} * 0.85; where: RW* = adjusted risk-weighted exposure amount for green exposure; E' = the total amount owed to the institution and parent undertakings and its subsidiaries, including any exposure in default, by the obligor client or group of connected clients, but excluding claims or contingent claims secured on residential property collateral; RW= risk-weighted exposure amount for green exposure, calculated in accordance with Part II, Title II and this Article. 2. 1. Risk-weighted exposure amounts for brown exposures, for brown assets as described in paragraph 3, shall be adjusted with a factor of 1,25. 3. For the purpose of this Article, the following shall apply: Green and brown assets are defined in accordance with the relevant EU taxonomies. For the purpose of implementing the definition referred to in subparagraphs 1 and 2, the EBA shall prepare draft technical regulatory standards. The EBA shall submit those draft regulatory technical standards to the Commission by ... [two years after entry into force of this Regulation]. The Commission is empowered to supplement this Regulation by adopting delegated acts in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010 with the regulatory technical standards specified in subparagraph 3 of this paragraph. 4. Institutions shall report the total amount of green and brown assets, calculated in accordance with paragraph 3, to the relevant authorities every three months. 5. The EBA shall, [three years after entry into force of this regulation], report to the Commission on the impact of the own funds requirement on the financing of, and investment in, green and brown assets. For the purposes of this article, the EBA report to the Commission shall include the following: (a) An analysis of the developments in financing and investments in green and brown assets over the period specified in subparagraph 1 of this article; (b) An analysis of the effective risk profile of green and brown assets over an entire economic cycle; (c) Any additional points which the EBA regards as important in this report. 6. The Commission shall submit this report to the European Parliament and the Council, accompanied by a legislative proposal if considered necessary. 7. The Green Support Factor cannot be combined with the SME support factor referred to in Article 501, the infrastructure support factor referred to in Article 501a or the support factor for social enterprises referred to in Article 501db.

2018/02/05
Committee: ECON

2 Amendments of Sirpa PIETIKÄINEN related to 2016/0360A(COD)

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