ISDA and the Association for Financial Markets in Europe submitted a response to a European Commission (EC) consultation on the Delegated Act on Article 8 taxonomy disclosures.
The associations recommend that
assets held in the trading portfolio should be excluded from the green
asset ratio’s (GAR’s) computation and associated disclosure obligation
and that only banking book exposures should form its basis. Moreover,
the associations note that although derivatives should be included in
the relevant key performance indicators measuring alignment with
sustainability purposes, this should happen gradually following a more
in-depth assessment of their current uses by EU policy-makers and
regulators. Finally, the associations point out that the inconsistent
treatment of derivatives in the GAR is not optimal from a methodological
consistency standpoint, as it could structurally disfavour banks. The
paper calls on the EC to reassess its approach for derivatives
holistically in the GAR until this matter has been appropriately
examined in more detail.
for ISDA Responds to EC Consultation on Taxonomy Disclosures
ISDA and AFME Comments on Art 8 Taxonomy DA disclosures(pdf)
ISDA
© ISDA - International Swaps and Derivatives Association
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