Bank Watchdog Moves Ahead With New ESG Rule Feared Across Europe
- Banks seen reporting low alignment with EU sustainability list
- Green asset ratio is part of EU’s sustainable finance push
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Europe’s banks need to stop complaining that a new ESG rule will make them “look bad” and accept that they’ll need to start reporting additional data in a few months, European Banking Authority Chairman Jose Manuel Campa said.
The metric in question is the green asset ratio (GAR), with mandatory disclosure set to kick in from January. Supported by the European Central Bank and lambasted by the finance industry, the ratio reflects the share of a bank’s balance sheet that aligns with the EU’s list of sustainable business activities.