Environment and sustainability and Risk & Compliance / Sofía Lazcano /
EU strengthens disclosure of ESG risks in credit institutions with new requirements
Commission Implementing Regulation (EU) 2024/3172 introduces new obligations for credit institutions, which will have to disclose half-yearly information on environmental, social and governance (ESG) risks, as well as on the impacts of climate change. This regulation, applicable from January 2025, aims to improve transparency and consistency in prudential risk management.
The main purpose of Commission Implementing Regulation (EU) 2024/3172, applicable as of January 1, 2025, is to amend the rules on uniform disclosure formats applicable to credit institutions in order to improve transparency and consistency in the scope of prudential requirements applicable to credit institutions. Specifically, it repeals, on the one hand, Commission Implementing Regulation (EU) 2021/637 of 15 March 2021, and on the other hand, it establishes implementing technical rules for the application of Regulation (EU) 575/2013 of the European Parliament.
By means of Article 22 of the Commission Implementing Regulation (EU) 2024/3172, new obligations are introduced regarding the disclosure of information on environmental, social and governance risks for those qualified by the text as “large institutions”, which includes those credit institutions that have the status of global systemically important institutions (G-SIIs) and the other systemically important institutions (O-SIIs) whose determination in Spain depends on the Bank of Spain, those three institutions with the largest total value of assets in a Member State and those which total value of its assets on an individual basis or, where appropriate, on the basis of their consolidated situation, is equal to or greater than 30 billion.
