87 Amendments of Sirpa PIETIKÄINEN related to 2018/0180(COD)
Amendment 1 #
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 carbonintegration of sustainability indicators in the methodology of benchmarks, and on positive carbon impact benchmarks (Text with EEA relevance)
Amendment 6 #
Proposal for a regulation
Recital 7
Recital 7
(7) Regulation (EU) 2016/1011 of the European Parliament and of the Council30 establishes uniform rules for benchmarks in the Union and caters for different types of benchmark. An increasing number of investors pursue low-carbonsustainable investment strategies and take recourse to low-carbon benchmarks to reference or measure the performance of investment portfolios. __________________ 30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).
Amendment 8 #
Proposal for a regulation
Recital 8
Recital 8
(8) A wide variety of indices is currently grouped together as low carbon or sustainability indices. Those low carbon indices are used as benchmarks for investment portfolios and products that are sold across borders. The quality and integrity of low carbon benchmarks affect the effective functioning of the internal market in a wide variety of individual and collective investment portfolios. Many low carbon and sustainability indices used as performance measures for investment portfolios, in particular for segregated investment accounts and collective investment schemes, are provided in one Member State but used by portfolio and asset managers in other Member States. In addition, portfolio and asset managers often hedge their carbon exposure and environmental risks by using benchmarks produced in other Member States.
Amendment 9 #
Proposal for a regulation
Recital 9
Recital 9
(9) Different categories of low carbonsustainability indices with various degrees of ambition have emerged in the marketplace. While some benchmarks aim to lower the carbon footprint of a standard investment portfolio, others aim to select only components that contribute to attaining the 2°C degree objective set out in the Paris Climate Agreement. Despite differences in objectives and strategies, all of these benchmarks are commonly promoted as low-carbonsustainability benchmarks.
Amendment 10 #
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10a) As the Commission High-Level Expert Group on Sustainable Finance concluded, benchmarks need to be better aligned with sustainability and reflect their exposure to sustainability risks. Investors need comparable and holistic information regarding environmental risks and impact to assess their portfolios beyond carbon exposure. A narrow focus on carbon exposure could have negative spill overs by redirecting investments flows to targets that carry other environmental risks. Hence, benchmark administrators should consider and disclose to what extent sustainability (environmental, social and governance) considerations are reflected within the methodology of the benchmark.
Amendment 11 #
Proposal for a regulation
Recital 10 b (new)
Recital 10 b (new)
(10b) Therefore, all benchmark administrators should incorporate in their benchmark methodologies key resource efficiency indicators, which alongside CO2 emissions, cover other emissions, impact on biodiversity, production of waste and the use of energy, renewable energy, raw materials, water, and land, as laid out in the European Commission monitoring framework on the circular economy (COM/2018/29 final), the EU action plan for the Circular Economy (COM/2015/0614 final) and in the European Parliament Resolution of 9 July 2015 on resource efficiency: moving towards a circular economy (2014/2208(INI)).
Amendment 12 #
Proposal for a regulation
Recital 10 c (new)
Recital 10 c (new)
(10c) As proposed by the Commission High-Level Expert Group on Sustainable Finance, ESMA should include references to ESG and sustainability considerations in its guidance on the ‘Benchmark statement’. ESMA, together with EFRAG, should develop guidance for benchmarks administrators to integrate circular economy indicators in benchmark methodologies.
Amendment 13 #
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 will create obstacles to the smooth functioning of the internal market.
Amendment 15 #
Proposal for a regulation
Recital 12
Recital 12
(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 benchmarkintegrating circular economy indicators in benchmark methodologies at Union level.
Amendment 16 #
Proposal for a regulation
Recital 13
Recital 13
(13) It is furthermore necessary to introduce a clear distinction between low- carbon and positive carbon impact benchmarks. While the underlying assets in a low-carbonWhile it is necessary to integrate circular economy indicators to all benchmark methodologies, a category of positive impact benchmark shs could be selected with the aim of reducing carbon emissions of tintroduced. The iundex portfolio when compared to the parent index, a positive carbon impact index should only comprise components whose emissions savings exceed their carbon emissionsrlying assets in a positive impact benchmark should only comprise components whose net impact based on harmonised circular economy indicators is positive.
Amendment 17 #
Proposal for a regulation
Recital 14
Recital 14
(14) Each company whose assets are selected as underlying in a positive impact benchmark should shave more carbon emissions than it produces, hence have a positive net impact on the environment. The asset and portfolio managers who claim to pursue an sustainable investment strategy compatible with the Paris Climate Agreement should therefore use positive carbon impact benchmarks.
Amendment 18 #
Proposal for a regulation
Recital 15
Recital 15
(15) A variety of benchmark administrators claim that their benchmarks pursue environmental, social and governance (‘ESG’) objectives. The users of those benchmarks do however not always have the necessary information on the extent to which the methodology of those benchmark administrators takes into account those ESG objectivesESG risks and impact. The existing information is also often scattered and does not allow for effective comparison for investment purposes across borders. To enable market players to make well- informed choices, all benchmark administrators should be required to disclose how their methodology takes into account the ESG factors for each benchmark or family of benchmarks that is promoted as pursuing ESG objectivesincorporates circular economy indicators for each benchmark. That information should also be disclosed in the benchmark statement. The administrators of benchmarks that do not promote or take into account the ESG objectives, should not be subject to this disclosure obligation.
Amendment 20 #
Proposal for a regulation
Recital 16
Recital 16
(16) For the same reasons, benchmark administrators of low-carbon and of positive 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 carbonpositive impact 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 savingenvironmental impact and risks of the underlying assets were measured, their respective values, including the total carbonenvironmental 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 21 #
Proposal for a regulation
Recital 17
Recital 17
(17) In addition, administrator of positive carbon impact benchmarks should disclose the positive carbonenvironmental 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 footprintnet environmental impact is positive.
Amendment 22 #
Proposal for a regulation
Recital 18
Recital 18
(18) To ensure continued adherence to the selected climate-change mitigation objectiveaccuracy of information to investors, administrators of low-carbon and positive 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 23 #
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- carbon and positive carbon impactintegrating circular economy indicators in the methodology of benchmarks, including the method for the calculation of carbon emissions and carbon savingsnet environmental impact 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 and the circular economy indicators laid down in the Commission Circular Economy Monitoring Platform and the Commission Circular Economy Action Plan. 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 25 #
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
Article 3 – paragraph 1 – point 23 a
(23a) ‘low-carbonpositive environmental impact 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 emissions when compared to the assets that comprise a standard capital- weighted benchmarkon the basis that their positive net environmental footprint and which is constructed in accordance with the standards laid down in the delegated acts referred to in Article 19a(2); Or. en (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011)
Amendment 26 #
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 carbonintegration of sustainability indicators in the methodology of benchmarks and on positive carbon impact benchmarks (Text with EEA relevance)
Amendment 27 #
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
Article 3 – paragraph 1 – point 23 b
Amendment 30 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point a
Article 1 – paragraph 1 – point 2 – point a
Regulation (EU) 2016/1011
Article 13 – paragraph 1 – point d
Article 13 – paragraph 1 – point d
(d) an explanation of how the key elements of the methodology laid down in point (a) reflect environmental, social or governance (‘ESG’) factors for each benchmark or family of benchmarks which pursue or take into account ESG objectives;; (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011), including key circular economy indicators, such as CO2 emissions, other emissions, impact on biodiversity, production of waste and the use of energy, renewable energy, raw materials, water, and land, as laid out by the European Commission monitoring framework on the circular economy (COM/2018/29 final). Or. en
Amendment 31 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b
Article 1 – paragraph 1 – point 2 – point b
Regulation (EU) 2016/1011
Article 13 – paragraph 2 a (new)
Article 13 – paragraph 2 a (new)
2a. The Commission shall be empowered to adopt delegated acts in accordance with Article 49 to specify further the minimum content of the explanation referred to in point (d) of paragraph 1.; (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011), and to update guidance on the ‘Benchmark statement’ to include references to ESG and sustainability considerations; Or. en
Amendment 32 #
Proposal for a regulation
Recital 7
Recital 7
(7) Regulation (EU) 2016/1011 of the European Parliament and of the Council30 establishes uniform rules for benchmarks in the Union and caters for different types of benchmark. An increasing number of investors pursue low-carbonsustainable investment strategies and take recourse to low-carbon benchmarks to reference or measure the performance of investment portfolios. _________________ 30 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).
Amendment 32 #
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 III – chapter 3 a (new)
Amendment 33 #
Proposal for a regulation
Recital 8
Recital 8
(8) A wide variety of indices isare currently grouped together as low carbon or sustainability indices. Those low carbon indices are used as benchmarks for investment portfolios and products that are sold across borders. The quality and integrity of low carbon benchmarks affect the effective functioning of the internal market in a wide variety of individual and collective investment portfolios. Many low carbon and sustainability indices used as performance measures for investment portfolios, in particular for segregated investment accounts and collective investment schemes, are provided in one Member State but used by portfolio and asset managers in other Member States. In addition, portfolio and asset managers often hedge their carbon exposure and environmental risks by using benchmarks produced in other Member States.
Amendment 34 #
Proposal for a regulation
Recital 9
Recital 9
(9) Different categories of low carbonsustainability indices with various degrees of ambition have emerged in the marketplace. While some benchmarks aim to lower the carbon footprint of a standard investment portfolio, others aim to select only components that contribute to attaining the 2°C degree objective set out in the Paris Climate Agreement. Despite differences in objectives and strategies, all of these benchmarks are commonly promoted as low-carbonsustainability benchmarks.
Amendment 34 #
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 – article 19 a – point 1
Title III – chapter 3 a – article 19 a – point 1
(1) The requirements laid down in Annex III shall apply to the provision of, and contribution to, low-carbon or positive carbonpositive environmental 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/?uri=CELEX%3A32016R1011)Or. en
Amendment 36 #
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 – article 19 a – point 2 – introductory part
Title III – chapter 3 a – article 19 a – point 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 impact benchmarks, including: positive environmental impact benchmarks, including: Or. en (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011)
Amendment 37 #
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 – article 19 a – point 2 – point c
Title III – chapter 3 a – article 19 a – point 2 – point c
(c) the method for the calculation of carbon emissions and carbon savings associated with the underlying assets.; , other emissions, impact on biodiversity, production of waste and the use of energy, renewable energy, raw materials, water, and land, associated with the underlying assets.; Or. en (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011)
Amendment 38 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) 2016/1011
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
2a. For each requirement in paragraph 2, a benchmark statement shall contain an explanation of how environmental, social and governance factors are reflected for each benchmark or family of benchmarks provided and published which pursue or take into ac. Or. en (https://eur-lex.europa.eu/legal-count ESG objectives. ent/en/TXT/?uri=CELEX%3A32016R1011)
Amendment 39 #
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10a) As the Commission High-Level Expert Group on Sustainable Finance concluded, benchmarks need to be better aligned with sustainability and reflect their exposure to sustainability risks. Investors need comparable and holistic information regarding environmental risks and impact to assess their portfolios beyond carbon exposure. A narrow focus on carbon exposure could have negative spill-overs by redirecting investment flows to targets that carry other environmental risks. Hence, benchmark administrators should evaluate and disclose to what extent sustainability (environmental, social and governance) considerations are reflected within the methodology of the benchmark.
Amendment 40 #
Proposal for a regulation
Recital 10 b (new)
Recital 10 b (new)
(10b) All benchmark administrators should incorporate key resource efficiency indicators into their benchmark methodologies, which in addition to CO2 emissions, cover other emissions, impact on biodiversity, production of waste, the use of energy, renewable energy, raw materials, water, and direct and indirect land use, to be developed in line with the Commission communications of 16 January 2018 on a monitoring framework for the circular economy and of 2 December 2015 entitled 'Closing the loop – An EU action plan for the Circular Economy' and European Parliament resolution of 9 July 2015 on resource efficiency: moving towards a circular economy (2014/2208(INI)).
Amendment 40 #
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)
2b. The Commission shall be empowered to adopt delegated acts in accordance with Article 49 to specify further the information referred to in in paragraph 2a. , to update guidance on the ‘Benchmark statement’ to include references to ESG and sustainability considerations; Or. en (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011)
Amendment 41 #
Proposal for a regulation
Recital 10 c (new)
Recital 10 c (new)
(10c) As proposed by the Commission High-Level Expert Group on Sustainable Finance, the European Securities and Markets Authority (ESMA) should include references to environmental, social and governance (ESG) considerations in its guidance on the ‘Benchmark statement’. ESMA, together with the European Financial Reporting Advisory Group (EFRAG), should develop guidance for benchmark administrators to integrate sustainability and circular economy indicators into benchmark methodologies.
Amendment 42 #
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 will create obstacles to the smooth functioning of the internal market.
Amendment 42 #
Proposal for a regulation
Annex I – subheading 1
Annex I – subheading 1
Amendment 43 #
Proposal for a regulation
Annex I – subheading 2
Annex I – subheading 2
Methodology for low carbonpositive impact benchmarks
Amendment 44 #
Proposal for a regulation
Annex I – point 1 – introductory part
Annex I – point 1 – introductory part
1. The administrator of a low-carbonpositive impact benchmark shall formalise, document and make public any methodology used for the calculation of low carbon benchmarkcircular economy indicators, describing the following:
Amendment 45 #
Proposal for a regulation
Annex I – point 1 – point a
Annex I – point 1 – point a
(a) the list of the underlying assets that are used for calculating the low carbon benchmarkpositive net impact;
Amendment 46 #
Proposal for a regulation
Recital 12
Recital 12
(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 benchmarkintegrating circular economy indicators into benchmark methodologies at Union level.
Amendment 46 #
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 ahaving a negative net environmental impact and therefore incompatible with inclusion in the low carbonpositive impact benchmark;
Amendment 47 #
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 carbonpositive impact benchmark measures the carbon footprint and carbon savingsenvironmental impact associated with the underlying assets in the index portfolio;
Amendment 48 #
Proposal for a regulation
Annex I – point 1 – point e
Annex I – point 1 – point e
(e) the tracking error between the low carbonpositive impact benchmark and the parent index;
Amendment 49 #
Proposal for a regulation
Annex I – point 1 – point f
Annex I – point 1 – point f
(f) the positive reweighting of low- carbon assets in the low carbonassets with environmentally positive impact in the benchmark versus the parent index and the explanation of why this reweighting is necessary to reflect the chosen objectives of the low carbonpositive impact benchmark;
Amendment 50 #
Proposal for a regulation
Annex I – point 1 – point g
Annex I – point 1 – point g
(g) the ratio between the market value of the securities that are in the low carbonpositive impact benchmark and the market value of the securities in the parent index;
Amendment 51 #
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 carbonpositive impact benchmark, including:
Amendment 52 #
Proposal for a regulation
Recital 13
Recital 13
(13) It is furthermore necessary to introduce a clear distinction between low- carbon and positive carbon impact benchmarks. While the underlying assets in a low-carbonWhile it is necessary to integrate circular economy indicators in all benchmark methodologies, a category of positive environmental impact benchmark shcould be selected with the aim of reducing carbon emissions of tintroduced. The iundex portfolio when compared to the parent index, a positive carbon impact index should only comprise components whose emissions savings exceed their carbon emissionsrlying assets in a positive environmental impact benchmark should only comprise components whose net impact, based on harmonised circular economy indicators, is positive.
Amendment 52 #
Proposal for a regulation
Annex I – point 1 – point h – point v a (new)
Annex I – point 1 – point h – point v a (new)
(va) Impact based on other circular economy indicators, as laid out in the European Commission monitoring framework on the circular economy (COM/2018/29 final) and the EU action plan for the Circular Economy (COM/2015/0614 final), including impact on biodiversity, production of waste and the use of energy, renewable energy, raw materials, water, and land.
Amendment 53 #
Proposal for a regulation
Annex I – point 1 – point i
Annex I – point 1 – point i
(i) the total carbon-footprint exposurenet environmental impact of the index portfolio and the estimated impacts on climate-change mitigation of the low carbonenvironment of the strategy pursued by the benchmark;
Amendment 54 #
Proposal for a regulation
Annex I – point 1 – point j
Annex I – point 1 – point j
(j) the rationale for adopting a particular low-carbonenvironmental methodology strategy or sustainability objective and an explanation of why the methodology is appropriate for the calculation of the low-carbonenvironmental impact and sustainability objectives of the benchmark;
Amendment 55 #
Proposal for a regulation
Annex I – subheading 3
Annex I – subheading 3
Amendment 56 #
Proposal for a regulation
Annex I – point 2
Annex I – point 2
2. The administrator of a positive carbon impact benchmark, in addition to the obligations applicable to the administrator of a low carbon benchmarked above, shall disclose the positive carbonenvironmental impact of each underlying asset included in the benchmark 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 ('positive carbon impact ratio'the net impact).
Amendment 57 #
Proposal for a regulation
Recital 14
Recital 14
(14) EachAll companyies whose assets are selected as underlying in a positive impact benchmark should shave more carbon emissia positive net impact ons than it produces, hence have a positive impact on e environment, without significantly harming any of the other environment. The aal and circular economy indicators. Asset and portfolio managers who claim to pursue an sustainable investment strategy compatible with the Paris Climate Agreement should therefore use positive carbonenvironmental impact benchmarks.
Amendment 57 #
Proposal for a regulation
Annex I – point 3 – introductory part
Annex I – point 3 – introductory part
3. Administrators of low-carbon and positive 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-carbon or positive carbonnet impact objectives. Those procedures shall provide:
Amendment 58 #
Proposal for a regulation
Annex I – point 4
Annex I – point 4
4. Administrators of low-carbon and positive carbon impact benchmarks shall regularly examine their methodologies to ensure that they reliably reflect the relevant low-carbon or positive carbonstated objectives and shall have a process in place for taking the views of relevant users into account.”.
Amendment 62 #
Proposal for a regulation
Recital 15
Recital 15
(15) A variety of benchmark administrators claim that their benchmarks pursue environmental, social and governance (‘ESG’) objectives. The users of those benchmarks do however not always have the necessary information on the extent to which the methodology of those benchmark administrators takes into account those ESG objectivesESG risks and impact. The existing information is also often scattered and does not allow for effective comparison for investment purposes across borders. To enable market players to make well- informed choices, all benchmark administrators should be required to disclose how their methodology takes into account the ESG factors for each benchmark or family of benchmarks that is promoted as pursuing ESG objectivesincorporates circular economy indicators and ESG risks for each benchmark. That information should also be disclosed in the benchmark statement. The administrators of benchmarks that do not promote or take into account the ESG objectives, should not be subject to this disclosure obligation.
Amendment 67 #
Proposal for a regulation
Recital 16
Recital 16
(16) For the same reasons, administrators of low-carbon and of positive carbonpositive environmental 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 carbonpositive impact 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 savingenvironmental impact and risks of the underlying assets were measured, their respective values, including the total carbonenvironmental 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 73 #
Proposal for a regulation
Recital 17
Recital 17
(17) In addition, administrator of positive carbon impact benchmarks should disclose the positive carbonenvironmental impact of each underlying asset included in those benchmarks, specifying the method and indicators used to determine whether the emission savings exceed the investment asset's carbon footprintnet environmental impact is positive.
Amendment 76 #
Proposal for a regulation
Recital 18
Recital 18
(18) To ensure continued adherence to the selected climate-change mitigation objective, administrators of low-carbon and positive carbonthe accuracy of information to investors, administrators of positive environmental 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 82 #
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- carbon and positive carbon impactassessing ESG risks and integrating harmonised circular economy indicators into the methodology of benchmarks, including the method for the calculation of carbon emissions and carbon savingsthe net environmental impact 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 and circular economy indicators to be developed in line with the Commission Circular Economy Monitoring Platform and the Commission Circular Economy Action Plan. 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 93 #
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-carbonpositive environmental impact 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 emissions when compared to the assets that comprise a standard capital- weighted benchmarkon the basis that their net environmental footprint is positive 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/?uri=CELEX%3A32016R1011)Or. en
Amendment 97 #
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)
Amendment 107 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point a
Article 1 – paragraph 1 – point 2 – point a
Regulation (EU) 2016/1011
Article 13 – paragraph 1 – point d (new)
Article 13 – paragraph 1 – point d (new)
(d) an explanation of how the key elements of the methodology laid down in point (a) reflect environmental, social or governance (‘ESG’) factors for each benchmark or family of benchmarks which pursue or take into account ESG objectives;; (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011), including key circular economy indicators, such as CO2 emissions, other emissions, impact on biodiversity, production of waste, use of energy, renewable energy, raw materials, water, and direct and indirect land use, to be developed in line with the Commission communication of 16 January 2018 on a monitoring framework for the circular economy; Or. en
Amendment 114 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b
Article 1 – paragraph 1 – point 2 – point b
Regulation (EU) 2016/1011
Article 13 – Paragraph 2 a (new)
Article 13 – Paragraph 2 a (new)
2a. The Commission shall be empowered to adopt delegated acts in accordance with Article 49 to specify further the minimum content of the explanation referred to in point (d) of paragraph 1.; (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011) of this Article, and to update guidance on the benchmark statement referred to in Article 27 to include references to ESG risks and sustainability indicators. Or. en
Amendment 120 #
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 124 #
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 – title
Title III – Chapter 3 a (new) – Article 19 a – title
Amendment 130 #
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 1
Title III – Chapter 3 a (new) – Article 19 a – paragraph 1
(1) The requirements laid down in Annex III shall apply to the provision of, and contribution to, low-carbon or positive carbonpositive environmental 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/?uri=CELEX%3A32016R1011)Or. en
Amendment 138 #
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 impact benchmarks, including: (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011)positive environmental impact benchmarks, including: Or. en
Amendment 140 #
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 carbon emissions and carbon savings associated with the underlying assets.; , other emissions, impact on biodiversity, production of waste and the use of energy, renewable energy, raw materials, water, and direct and indirect land use, associated with the underlying assets.; Or. en (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011)
Amendment 150 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) 2016/1011
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
2a. For each requirement in paragraph 2, a benchmark statement shall contain an explanation of how environmental, social and governance factors are reflected for each benchmark or family of benchmarks provided and published which pursue or take into ac. Or. en (https://eur-lex.europa.eu/legal-count ESG objectives. ent/en/TXT/?uri=CELEX%3A32016R1011)
Amendment 154 #
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)
2b. The Commission shall be empowered to adopt delegated acts in accordance with Article 49 to specify further the information referred to in in paragraph 2a. , to update guidance on the 'Benchmark statement' to include references to and sustainability risks and indicators. Or. en (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32016R1011)
Amendment 167 #
Proposal for a regulation
Annex I – subheading 1
Annex I – subheading 1
Amendment 168 #
Proposal for a regulation
Annex I – subheading 2
Annex I – subheading 2
Methodology for low carbonpositive environmental impact benchmarks
Amendment 171 #
Proposal for a regulation
Annex I – point 1 – introductory part
Annex I – point 1 – introductory part
1. The administrator of a low-carbonpositive environmental impact benchmark shall formalise, document and make public any methodology used for the calculation of low carbon benchmarkthe net environmental impact, based on the circular economy indicators, describing the following:
Amendment 177 #
Proposal for a regulation
Annex I – point 1 – point a
Annex I – point 1 – point a
(a) the list of the underlying assets that are used for calculating the low carbonpositive net impact benchmark;
Amendment 184 #
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 anegative net environmental impact and therefore incompatible with inclusion in the low carbonpositive impact benchmark;
Amendment 189 #
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 carbon benchmark measures the carbon footprint and carbon savingspositive environmental impact benchmark measures the environmental impact associated with the underlying assets in the index portfolio;
Amendment 195 #
Proposal for a regulation
Annex I – point 1 – point e
Annex I – point 1 – point e
(e) the tracking error between the low carbonpositive environmental impact benchmark and the parent index;
Amendment 201 #
Proposal for a regulation
Annex I – point 1 – point f
Annex I – point 1 – point f
(f) the positive reweighting of low- carbon assets in the low carbonassets with environmentally positive impact in the benchmark versus the parent index and the explanation of why this reweighting is necessary to reflect the chosen objectives of the low carbonpositive impact benchmark;
Amendment 208 #
Proposal for a regulation
Annex I – point 1 – point g
Annex I – point 1 – point g
(g) the ratio between the market value of the securities that are in the low carbonpositive impact benchmark and the market value of the securities in the parent index;
Amendment 212 #
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 carbonpositive environmental impact benchmark, including:
Amendment 234 #
Proposal for a regulation
Annex I – point 1 – point h – point v a (new)
Annex I – point 1 – point h – point v a (new)
(va) impact calculated based on other circular economy indicators in addition to CO2 emissions, to be developed in line with the Commission communications of 16 January 2018 on a monitoring framework for the circular economy and of 2 December 2015 entitled 'Closing the loop – an EU action plan for the Circular Economy', including other emissions, impact on biodiversity, production of waste, use of energy and renewable energy, raw materials, water and direct and indirect land use.
Amendment 238 #
Proposal for a regulation
Annex I – point 1 – point i
Annex I – point 1 – point i
(i) the total carbon-footprint exposurenet environmental impact of the index portfolio and the estimated impacts on climate-change mitigation of the low carbonthe environment of the strategy pursued by the benchmark;
Amendment 241 #
Proposal for a regulation
Annex I – point 1 – point j
Annex I – point 1 – point j
Amendment 247 #
Proposal for a regulation
Annex I – subheading 3
Annex I – subheading 3
Amendment 255 #
Proposal for a regulation
Annex I – point 2
Annex I – point 2
2. The administrator of a positive carbon impact benchmark, in addition to the obligations applicable to the administrator of a low carbon benchmarked above, shall disclose the positive carbonenvironmental impact of each underlying asset included in the benchmark 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 ('positive carbon impact ratio')net impact.
Amendment 262 #
Proposal for a regulation
Annex I – point 3 – introductory part
Annex I – point 3 – introductory part
3. Administrators of low-carbon and positive 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-carbon or positive carbonsustainability or positive environmental impact objectives. Those procedures shall provide:
Amendment 264 #
Proposal for a regulation
Annex I – point 4
Annex I – point 4
4. Administrators of low-carbon and positive carbon impact benchmarks shall regularly examine their methodologies to ensure that they reliably reflect the relevant low-carbon or positive carbonstated objectives and shall have a process in place for taking the views of relevant users into account.”.