ECB and the ESAs call for enhanced climate-related disclosure for structured finance products

The European Supervisory Authorities (ESAs) and the European Central Bank (ECB) have issued a Joint Statement on climate-related disclosure for structured finance products, calling on issuers, sponsors, and originators of structured finance products to proactively collect comprehensive information on climate-related risks during the origination process.
The ESAs and ECB believe that enhanced climate-related data are necessary for securitised assets, which are often backed by assets exposed to physical or transition climate-related risks.
They are working towards enhancing disclosure standards for securitised assets by including new, proportionate, and targeted climate change-related information.
The lack of climate-related data on the assets underlying structured finance products not only poses a problem for assessing and addressing climate-related risks but also impedes the classification of products and services as sustainable under the EU Taxonomy Regulation and Sustainable Finance Disclosure Regulation (SFDR).
The ESAs and ECB are committed to supporting better and targeted disclosures for structured finance products and are working on enhancing disclosure requirements for financial institutions and financial products. The ECB is committed to acting as a catalyst, engaging closely with relevant EU authorities to support better and harmonised disclosure of climate-related data for assets mobilised as collateral.