How do European banks prepare for their ESG reporting in line with Pillar 3 and Green Asset Ratio?

Climate change continues to take centre stage on the European regulatory agenda. The EU committed to transition its economy to a sustainable economic model, achieving climate neutrality by 2050. A set of new regulations and initiatives to stimulate the sustainability transition is constantly emerging including in the financial sector. To foster transparency, the EU put forward a number of key legislative proposals, such as the Corporate Sustainability Reporting Directive (CSRD), which will be further complemented by a set of European Sustainability Reporting Standards as well as the Taxonomy Regulation and the Sustainability Financial Reporting Directive (SFDR) and disclosures for banks related to ESG risk (Pillar 3 reporting).

The Pillar 3 disclosure requires European banks to publish a draft of qualitative and quantitative information on transition and physical risks, exposures to at-risk sectors and lending to green activities on a semi-annual basis. Banks will also have to report their Green Asset Ratio, which measures the extent to which bank’s activities are aligned with the EU Taxonomy. In this webinar we will discuss how these regulations impact European banks and their clients and what are the challenges.

Join our panelists as they discuss:

• What are the Pillar 3 disclosure requirements and the Green Asset Ratio?
• How are Pillar 3 and Green Asset Ratio reporting impacting banks and how are they preparing?
• How do international initiatives like the Net-Zero Banking Alliance and existing legislation (e.g., CSRD, SFDR) interact and how does this impact banks’ reporting?
• How is ESG likely to evolve, what challenges lie ahead, and how can they be overcome?