40 Amendments of Caroline NAGTEGAAL related to 2018/0180(COD)
Amendment 27 #
Proposal for a regulation
Title 1
Title 1
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2016/1011 on low carbclimate transition benchmarks and posinegative carbon impact benchmarks (Text with EEA relevance)
Amendment 38 #
Proposal for a regulation
Recital 10
Recital 10
(10) Divergent approaches to benchmark methodologies result in fragmentation of the internal market because users of benchmarks do not have clarity on whether a particular low carbon index is a benchmark aligned to the 2C° objective or merely a benchmark that aims to lower the carbon footprint of a standard investment portfolio. To address potentially illegitimate claims by administrators about the low-carbon nature of their benchmarks, Member States are likely tocould adopt different rules to avoid the ensuing investors’ confusion and ambiguity about the aims and level of ambition underpinning different categories of so called low carbon indices used as benchmarks for a low carbon investment portfolio.
Amendment 43 #
Proposal for a regulation
Recital 11
Recital 11
(11) In the absence of a harmonised framework to ensure the accuracy and integrity of the main categories of low carbon benchmarks used in individual or collective investment portfolios, it is likely that differences in Member States' approaches wicould potentially create obstacles to the smooth functioning of the internal market.
Amendment 44 #
(12) Therefore, to maintain the proper functioning of the internal market, to further improve the conditions of its functioning, and to ensure a high level of consumer and investor protection, it is appropriate to adapt Regulation (EU) 2016/1011 to lay down a regulatory framework for harmonised low carbon or climate transition benchmarks at Union level. To offer climate transition or negative carbon benchmark is left to the discretion of the benchmark providers and shall not impede their ability to produce other benchmarks that measure or take into consideration the carbon footprint.
Amendment 53 #
Proposal for a regulation
Recital 13
Recital 13
(13) It is furthermore necessary to introduce a clear distinction between low- carbclimate transition and posinegative carbon impact benchmarks. While the underlying assets in a low-carbon benchmark should be selected with the aim of reducing carbongreenhouse gas emissions of the index portfolio when compared to the parent index, a posinegative carbon impact index should only comprise components whose emissions savings exceed their carbon emissions.
Amendment 59 #
Proposal for a regulation
Recital 14
Recital 14
(14) Each company whose assets are selected as underlying in a posinegative impact benchmark should save more carbon emissions than it produces, hence have a positive impact on the environment. The asset and portfolio managers who claim to pursue an investment strategy compatible with the Paris Climate Agreement should therefore use posinegative carbon impact benchmarks.
Amendment 60 #
Proposal for a regulation
Recital 14
Recital 14
(14) Each company whose assets are selected as underlying in a posinegative impact benchmark should save more carbon emissions than it produces, hence have a positive impact on the environment. The asset and portfolio managers who claim to pursue an investment strategy compatible with the Paris Climate Agreement should therefore use posinegative carbon impact benchmarks.
Amendment 68 #
Proposal for a regulation
Recital 16
Recital 16
(16) For the same reasons, administrators of low-carbclimate transition and of posinegative carbon impact benchmarks should equally publish their methodology used for their calculation. That information should describe how the underlying assets were selected and weighted and which assets were excluded and for what reason. The benchmark administrators should also specify how the low carbclimate transition benchmarks differ from the underlying parent index, notably in terms of the applicable weights, market capitalisation and financial performance of the underlying assets. To assess how the benchmark contributes to the environmental objectives, the benchmark administrator should disclose how the carbon footprint and carbon savings of the underlying assets were measured, their respective values, including the total carbon footprint of the benchmark, and the type and source of the data used. To enable asset managers to choose the most appropriate benchmark for their investment strategy, benchmark administrators should explain the rationale behind the parameters of their methodology and explain how the benchmark contributes to the environmental objectives, including its impact on climate-change mitigation. The published information should also include details on the frequency of reviews and the procedure followed.
Amendment 71 #
Proposal for a regulation
Recital 17
Recital 17
(17) In addition, administrator of posinegative carbon impact benchmarks should disclose the posinegative carbon impact of each underlying asset included in those benchmarks, specifying the method used to determine whether the emission savings exceed the investment asset's carbon footprint.
Amendment 75 #
Proposal for a regulation
Recital 18
Recital 18
(18) To ensure continued adherence to the selected climate-change mitigation objective, administrators of low-carbclimate transition and posinegative carbon impact benchmarks should regularly review their methodologies and inform users of the applicable procedures for any material change. When introducing a material change, benchmark administrators should disclose the reasons for that change and explain how the change is consistent with the benchmarks’ initial objectives.
Amendment 80 #
Proposal for a regulation
Recital 19
Recital 19
Amendment 85 #
Proposal for a regulation
Recital 19
Recital 19
(19) In order to enhance transparency and ensure an adequate level of harmonization, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to specify further the minimum content of the disclosure obligations that benchmark administrators that take into account the ESG objectives should be subject to, and to specify the minimum standards for harmonization of the methodology of low- carbclimate transition and posinegative carbon impact benchmarks, including the method for the calculation of carbon emissions and carbon savings associated with the underlying assets, taking into account the Product and Organisation Environmental Footprint methods as defined in points (a) and (b) of point 2 of Commission Recommendation 2013/179/EU31 . It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. _________________ 31 Commission Recommendation 2013/179/EU of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1).
Amendment 88 #
Proposal for a regulation
Recital 19 a (new)
Recital 19 a (new)
(19a) Data used for regulated data benchmarks should be sourced either directly from a trading venue or from an approved reporting mechanism or from an intermediary, as long as this intermediary enjoys no discretion to alter the input data.
Amendment 94 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EU) 2016/1011
Article 3 – paragraph 1 – point 23 a (new)
Article 3 – paragraph 1 – point 23 a (new)
(23a) ‘low-carbClimate transition benchmark’ means a benchmark where the underlying assets, for the purposes of point 1(b)(ii) of this paragraph, are selected so that the resulting benchmark portfolio has less carbon greenhouse gas emissions when compared to the assets that comprise a standard capital-weighted benchmark and which is constructed in accordance with the standards laid down in the delegated acts referred to in Article 19a(2); (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016R1011&from=EN)Or. en
Amendment 100 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EU) 2016/1011
Article 3 – paragraph 1 – point 23 b (new)
Article 3 – paragraph 1 – point 23 b (new)
(23b) ‘posinegative carbon impact benchmark’ means a benchmark where the underlying assets, for the purposes of point 1(b)(ii) of this paragraph, are selected on the basis that their carbon emissions savings exceed the asset's carbon footprint and which is constructed in accordance with the standards laid down in the delegated acts referred to in Article 19a(2).; (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016R1011&from=EN)Or. en
Amendment 104 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1 a (new)
Article 1 – paragraph 1 – point 1 a (new)
Regulation (EU) 2016/1011
Article 3 – paragraph 1 – point 24 a
Article 3 – paragraph 1 – point 24 a
1a. Article 3 paragraph 1 is amended as follows: (a) point 24a is replaced "(a) input data contributed entirely from:" point 24, point a, sub-point vii is replaced: "(vii) a service provider to which the benchmark administrator has outsourced the data collection in accordance with Article 10, with the exception of Article 10(3)(f), provided that the service provider receives the data entirely from an entity referred to in points (i) to (vi);"
Amendment 116 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation (EU) 2016/1011
Title III – Chapter 3 a (new) – title
Title III – Chapter 3 a (new) – title
Amendment 125 #
(1) The requirements laid down in Annex III shall apply to the provision of, and contribution to, low-carbclimate transition or posinegative carbon impact benchmarks in addition to, or as a substitute for, the requirements of Title II, III and IV. (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016R1011&from=EN)Or. en
Amendment 135 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation (EU) 2016/1011
Title III – Chapter 3 a (new) – Article 19 a – paragraph 2 – introductory part
Title III – Chapter 3 a (new) – Article 19 a – paragraph 2 – introductory part
(2) The Commission shall be empowered to adopt delegated acts in accordance with Article 49 to specify further the minimum standards for low- carbon and positive carbon impactadministrator of a climate transition benchmark or a negative carbon benchmark shall formalise, document and make public any methodology used for the calculation of these benchmarks, including:
Amendment 141 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation (EU) 2016/1011
Title III – Chapter 3 a (new) – Article 19 a – paragraph 2 – IP – point c
Title III – Chapter 3 a (new) – Article 19 a – paragraph 2 – IP – point c
(c) the method for the calculation of greenhouse gases, carbon emissions and carbon savings associated with the underlying assets.; (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016R1011&from=EN)Or. en
Amendment 145 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3 a (new) Regulation (EU) 2016/1011
Article 1 – paragraph 1 – point 3 a (new) Regulation (EU) 2016/1011
3a. In article 21, the last subparagraph of paragraph (3) is amended as follows: "By the end of that period, the competent authority shall review its decision to compel the administrator to continue to publish the benchmark and may, where necessary, extend the time period by an appropriate period not exceeding a further 12 months. The maximum period of mandatory administration shall not exceed 5 years in total.";
Amendment 146 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3 b (new)
Article 1 – paragraph 1 – point 3 b (new)
Regulation (EU) 2016/1011
Article 23 – paragraph 6 – subparagraph 2
Article 23 – paragraph 6 – subparagraph 2
3b. In article 23, last subparagraph of paragraph (6) is amended as follows: "The maximum period of mandatory contribution under points (a) and (b) of the first subparagraph shall not exceed 5 years in total.";
Amendment 153 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) 2016/1011
Article 27 – paragraph 2 b (new)
Article 27 – paragraph 2 b (new)
Amendment 157 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4 a (new)
Article 1 – paragraph 1 – point 4 a (new)
Regulation (EU) 2016/1011
Article 51 – paragraph 4 a (new)
Article 51 – paragraph 4 a (new)
4a. In Article 51 the following paragraph is inserted: "4a. An existing benchmark designated as critical by an implementing act adopted by the Commission in accordance with Article 20 that does not meet the requirements to obtain an authorisation in accordance with Article 34 of this Regulation by 1 January 2020 may, if the competent authority considers that its discontinuation would affect financial stability, be used until 31 December 2021.";
Amendment 162 #
Proposal for a regulation
Annex I – subheading 1
Annex I – subheading 1
Amendment 169 #
Proposal for a regulation
Annex I – subheading 2
Annex I – subheading 2
Methodology for low carbclimate transition benchmarks
Amendment 173 #
Proposal for a regulation
Annex I – point 1 – introductory part
Annex I – point 1 – introductory part
1. The administrator of a low-carbclimate transition benchmark shall formalise, document and make public any methodology used for the calculation of low carbclimate transition benchmarks, describing the following:
Amendment 176 #
Proposal for a regulation
Annex I – point 1 – point a
Annex I – point 1 – point a
Amendment 182 #
Proposal for a regulation
Annex I – point 1 – point c
Annex I – point 1 – point c
(c) the criteria applied to exclude assets or companies that are associated with a level of carbon footprint or a level of fossil reserves that are incompatible with inclusion in the low carbclimate transition benchmark;
Amendment 188 #
Proposal for a regulation
Annex I – point 1 – point d
Annex I – point 1 – point d
(d) the criteria for and the methods of how the low carbclimate transition benchmark measures the carbon footprint and carbon savings associated with the underlying assets in the index portfolio;
Amendment 194 #
Proposal for a regulation
Annex I – point 1 – point e
Annex I – point 1 – point e
(e) if the benchmark is tracking a parent benchmark, the tracking error between the low carbclimate transition benchmark and the parent index;
Amendment 199 #
Proposal for a regulation
Annex I – point 1 – point f
Annex I – point 1 – point f
(f) if the benchmark is tracking a parent benchmark, the positive reweighting of low- carbon assets in the low carband low greenhouse gas assets in the climate transition benchmark versus the parent index and the explanation of why this reweighting is necessary to reflect the chosen objectives of the low carbclimate transition benchmark;
Amendment 206 #
Proposal for a regulation
Annex I – point 1 – point g
Annex I – point 1 – point g
(g) if the benchmark is tracking a parent benchmark, the ratio between the market value of the securities that are in the low carbclimate transition benchmark and the market value of the securities in the parent index;
Amendment 213 #
Proposal for a regulation
Annex I – point 1 – point h – introductory part
Annex I – point 1 – point h – introductory part
(h) the type and source of input data used for the selection of assets or companies eligible for the low carbclimate transition benchmark, including:
Amendment 229 #
Proposal for a regulation
Annex I – point 1 – point h – point iv
Annex I – point 1 – point h – point iv
Amendment 237 #
Proposal for a regulation
Annex I – point 1 – point i
Annex I – point 1 – point i
(i) the total carbon-footprint exposure of the index portfolio and the estimated impacts on climate-change mitigation of the low carbclimate transition strategy pursued by the benchmark;
Amendment 257 #
Proposal for a regulation
Annex I – point 2
Annex I – point 2
2. The administrator of a posinegative carbon impact benchmark, in addition to the obligations applicable to the administrator of a low carbclimate transition benchmark, shall disclose the posinegative carbon impact of each underlying asset included in the benchmarkat the level of the portfolio and shall specify the formula or calculation that is used to determine whether the emission savings exceed the investment asset's or company's carbon footprint ('posinegative carbon impact ratio').
Amendment 258 #
Proposal for a regulation
Annex I – point 2 a (new)
Annex I – point 2 a (new)
2a. The administrator of a negative carbon benchmark shall document and make public any methodology used for the calculation of emissions which would continue to exist if the company's products or services would be replaced by more carbon emitting substitutes ('emission savings') and the corresponding amount of emissions savings;
Amendment 260 #
Proposal for a regulation
Annex I – point 3 – introductory part
Annex I – point 3 – introductory part
3. Administrators of low-carbclimate transition and posinegative carbon impact benchmarks shall adopt and make public to users procedures for and the rationale of any proposed material change in their methodology. Those procedures shall be consistent with the overriding objective that benchmark calculations adhere continuously to the low greenhouse gas, low-carbon or posinegative carbon impact objectives. Those procedures shall provide:
Amendment 263 #
Proposal for a regulation
Annex I – point 4
Annex I – point 4