1 Amendments of Molly SCOTT CATO related to 2016/0360A(COD)
Amendment 983 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 448 a (new)
Article 448 a (new)
Article 448a Disclosure of environmental, social and governance risk 1. From [1 year after entry into force of this Regulation], institutions shall disclose the following information related to environmental, social and governance risks in accordance with Article 98 of Directive 2013/36/EU: (a) A description of specific environmental, social and governance risks, which could arise in the short-, medium-, or long-term and could have a material and financial impact on the institution; (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 greenhouse gas-related assets, including risks related to the depreciation of assets, due to regulatory change if these are material; (d) A description of the impact of environmental, social and governance 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 these risks; (f) The parameters that the institution used to evaluate the impact of short-, medium- and long-term environmental, social and governance 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 environmental, social and governance risks.” (h) Whether the fiduciary duty within the institution encompasses ESG factors (i) Whether model contracts with clients incorporate the transmission of the beneficiary interest as well as clear expectations on the identification and integration of ESG risks (j) whether a the do-no-harm principle according to ESG risk analysis is effectively integrated by the institution management; 2. For the purpose of paragraph 1 EBA shall develop by 1 June 2020 draft regulatory technical standards to specify further details on the disclosure requirements provided for in paragraph 1. Power is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.