ESAs propose ESG disclosures for STS securitisations

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) today jointly submitted to the European Commission Draft Regulatory Technical Standards (RTS) on the ESG impact disclosure for Simple, Transparent and Standardised (STS) securitisations under the Securitisation Regulation (SECR). These final draft RTS aim to help market participants make informed decisions about the sustainability impact of their investments.

The key proposals included in the technical standards specify ESG disclosures which would apply to STS securitisations where the underlying exposures are residential loans, auto loans and leases.

These technical standards aim to ensure consistency with those developed under the Sustainable Finance Disclosure Regulation (SFDR) which distinguish between the publication of available information on mandatory indicators (e.g., energy efficiency) and on additional indicators (e.g., emissions).

Go to the final report

Next steps

Following the submission of these RTS, the European Commission is expected to endorse the RTS within three months of their publication.