As part of the ENGAGE for ESG Activation Investments project, co-funded by the European Union, dedicated templates and taxonomy based on the identification of key data fields relevant for the collection of energy efficiency information is currently being developed.
Set to be finalised in the summer of 2023, the templates will initially be made available to the two pilot institutions and project consortium partners, Woonnu and Unión de Créditos Inmobiliarios (UCI). They will be tested and evaluated in terms of data accessibility and availability in the second half of 2023.
The templates will draw on the current ESMA underlying exposures for residential mortgages (Annex 2 of Commission Delegated Regulation (EU) 2020/1224 (the “disclosure RTS”)) and consumer loans (Annex 6 of the disclosure RTS) that will be subject to a public consultation as part of the revision of Regulation (EU) 2017/2402 (the Securitisation Regulation).
The ENGAGE templates are expected to be structured according to three building blocks, in particular:
Compliance with the EU Taxonomy Regulation for:
European Investment Bank information requirements to capture funds from the European Local Energy Assistance (ELENA) programme for the financing of the renovation wave.
European Central Bank (ECB) stress test fields related to climate change (such as flooding and heating) for financing activities related to the building stock.
A modular design is planned for ENGAGE’s energy efficiency templates to allow for extension if necessary, and “No Data Options” will be incorporated for those data fields where the requested information is missing.
Applicable to securitisations, covered bonds and whole loan portfolios, the templates will allow for the centralisation and harmonization of sustainability-related disclosures.
The ENGAGE templates aim to include information collected at loan origination plus other relevant climate-related information. They are expected to be updated on a regular basis taking into consideration the latest regulations, such as the EU Green Bond Standard, as well as the revised Energy Performance for Buildings Directive.
The proposed energy efficiency templates will be presented to the three European Supervisory Authorities (EBA, EIOPA, ESMA) and the ECB, who recently highlighted their commitment to facilitating the transition towards a more sustainable economy in a joint statement on 13 March 2023.
ENGAGE, with its inclusive approach, will seek and integrate feedback from the whole industry and, as such, will invite banks, lending institutions, rating agencies, and other interested parties to participate in the testing of the energy efficiency template content.
A one-size-fits-all solution is expected to improve the quality, standardisation, consistency, and harmonisation of the data collected and redistributed to investors and third parties.
To learn more about ENGAGE, please email engage4esg@eurodw.eu or contact Project Coordinator, Marco Angheben via +49 (0) 69 50986 9017.
To achieve the proposed 55% emission reduction climate target by 2030, around EUR 275 billion of additional investments are needed per year.
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