EBA_Ad hoc ESG data collection

EBA decision on an ad hoc data collection of institutions’ ESG data

On 18 July 2023, the European Banking Authority (EBA) published the decision of 6 July 2023 concerning ad hoc collection by Member State competent authorities (NCAs) to the EBA of institutions’ environmental, social, and governance (ESG) data.

‘We will temporarily collect data from large, listed institutions based on their Pillar 3 quantitative disclosure requirements on ESG risks, until a supervisory reporting framework on ESG risks is in place.’

- EBA mentioned on its official account on Linkedin.

Currently, institutions do not submit supervisory reporting data on ESG risks, quantitative ESG risk data is only available in their Pillar 3 reports disclosed in accordance with Articles 434 and 449a of the Capital Requirements Regulation (CRR) and Article 18a of the Implementing Regulation (EU) 2021/637.

EBA, however, clarified the ad hoc collection of ESG data is “without prejudice and does not replace the monitoring of ESG risks by competent authorities”.

Reasons behind

The collection must provide NCAs with data to monitor ESG-related risks and support the EBA in executing its ESG mandates, including establishing a risk monitoring framework, ensuring risks and unwanted market distortions are spotted at an early stage, and guiding the development of relevant policy in the future and contributing to the European Commission’s Strategy for financing the transition to a sustainable economy.

To achieve this, the EBA is also required to put in place a monitoring system to assess material ESG risks, taking into account the Paris Agreement to the United Nations Framework Convention on Climate Change.

Data to be reported and key submission date

According to the provisions set out in the mentioned decision, the competent authorities shall submit to the EBA the quantitative data disclosed by the large institutions which are subject to the disclosure requirements as provided for in Article 449a of Regulation (EU) No 575/2013. Such data includes but is not limited to, disclosures on climate-change-related transition and physical risks, including information on exposures towards carbon-related assets and assets subject to chronic and acute climate change events, etc.

Competent authorities shall request institutions to submit the data in accordance with the data exchange formats and representations specified by the competent authorities.

The technical package supporting the collection of this ESG ad-hoc collection has been already made available to the public on EBA website, as part of Reporting Framework 3.3.

EBA has set the first annual submission reference date as 31 December this year. Competent authorities will need to submit institutions’ data to the EBA by June 2024.

Meanwhile, the first semi-annual reference date is 30 June 2024, and data must be submitted by 31 December 2024.

ESG Data Collection: Addressing the increasing demand with ATOME

Where the data is not available to the competent authorities, EBA may request the data from institutions and the competent authorities shall assist EBA in collecting the data.

To address the increasing demand for ESG data sets to collect and manage, we have expanded ATOME platform capabilities for advanced sourcing of a variety of data, including ESG-related information. Reach out to us to learn how we can empower your ESG data collection & management with innovative technologies and also discover how Green Data Hubs may serve your specific needs in the ESG data field with the comprehensive support of our data & tech experts.

Contact us