Expectation 13 on disclosure policies and procedures
Transparency of climate-related and environmental risk disclosures
13. For the purpose of their regulatory disclosures, institutions are expected to publish meaningful information and key metrics on climate-related and environmental risks that they deem to be material, with due regard to the European Commission’s guidelines on non-financial reporting: Supplement on reporting climate-related information.
13.1 Institutions are expected to specify in their disclosure policies key considerations that inform their assessment of the materiality of climate-related and environmental risks, as well as the frequency and means of disclosures.
13.2 In case an institution deems climate-related risks to be immaterial, the institution is expected to document this judgement with the available qualitative and quantitative information underpinning its assessment.
13.3 When institutions disclose figures, metrics and targets as material, they are expected to disclose or reference the methodologies, definitions and criteria associated with them.
Content of climate-related and environmental risk disclosures
13.4 Institutions are expected to disclose climate-related risks that are material with due regard to the European Commission’s guidelines on non-financial reporting: Supplement on reporting climate-related information.
13.5 In particular, institutions are expected to disclose the institution’s financed Scope 3 GHG emissions* for the whole group.
13.6 Institutions are expected to disclose the key performance indicators (KPIs) and key risk indicators (KRIs) used for the purposes of their strategy-setting and risk management, as well as their current performance against these metrics.
Other environmental risk disclosures
13.7 Institutions are expected to evaluate any further environmental risk-related information needed to comprehensively convey their risk profile.
*Scope 3 emissions refer to the GHG emissions of the counterparties of the bank. The direct GHG emissions of financial institutions are scope 1 emissions, while the GHG emissions linked to their energy consumption are scope 2 emissions.
