BMR Delegated Regulation: ESG Explanation in the Benchmark Statement
This Regulation supplements Regulation (EU) 2016/1011 by requiring benchmark administrators to explain in the benchmark statement how environmental, social and governance (ESG) factors are reflected in each benchmark or family of benchmarks they provide and publish. It sets out a uniform template for the explanation to ensure comparability between benchmarks, and lays down specific disclosure requirements according to the type of underlying assets. In particular, it sets additional disclosure rules for EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks and significant equity and bond benchmarks, in support of the emission reduction goals of the Paris Agreement and the European Green Deal.
Timeline
- 23 Dec 2020ESG factor disclosure requirements (general benchmarks)
- 31 Dec 2021Paris Agreement alignment disclosures for significant equity and bond benchmarks, EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks: This Regulation applies immediately from its date of entry into force, but from
Key facts
- Reference
- Regulation (EU) 2020/1816
- Adopted
- 17 Sep 2020
- Published
- 3 Dec 2020
- Status
- In force
- Topic
- Sustainable Finance
- Industries
- Financial Services
Main compliance requirements
Paid members only
The main compliance requirements, applicability questions and penalties are available in the ZC Smart Compliance Hub. Paid members and clients can sign in to the Hub to view them.
Related legislation
- Supplements Regulation (EU) 2016/1011 (Regulation of the European Parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds), in particular the requirements of Article 27(2b). Also related to Delegated Regulations (EU) 2020/1817 and (EU) 2020/1818, which set out, respectively, the minimum content of the explanation of how ESG factors are reflected in the benchmark methodology and the minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks.
Official sources
Commission Delegated Regulation (EU) 2020/1816 supplementing Regulation (EU) 2016/1011 as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided and published