Template 3: Banking book - Indicators of potential climate change transition risk: Alignment metrics

In accordance with point (a) of paragraph 4 in the instructions of Template 3, as stipulated in Annex XL of Regulation (EU) 2021/637, institutions are required to disclose the subsectors within the sectors indicated in column (a). In Annex XXXIX of ITS on Pillar 3 disclosures, under Template 3 there is a list of NACE sectors to be considered to be included in column (b) of the template. It is not mandatory to include all of these NACE sectors listed under Template 3, nevertheless these shall be all taken into account, when determining the final subsectors to be disclosed in column (b). Should specific scenarios or detailed assumptions for a listed NACE sub-sector not be available on the IEA website, it is acceptable for institutions to omit these sub-sectors from their reported alignment metrics in Template 3, and column (b) should include only the sub-sectors that were covered in the assumptions and related calculations. Institutions should document the rationale for any omissions, ensuring transparency in the disclosures process.