Template 8 – GAR (%)

The clarification on the calculation of the flow of new exposures was provided by the Commission in its Draft Commission Notice published on 21 December 2023 ( link ), as regards the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of the EU Taxonomy Regulation on the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets. Under question 65 it is clarified that, when computing the flow KPIs, institutions should only consider the gross carrying amount of newly incurred exposures (i.e. new loans and advances, debt securities, equity instruments), that is only new exposures that have been incurred during the year prior to the disclosure reference date, without deducting the amounts of loan repayments or disposals of debt securities/equity instruments that have occurred during the year prior to the disclosure reference date. Institutions should therefore not compute the numerator and the denominator of the flow KPI as exposures on the disclosure reference date (T) minus exposures on the disclosure reference date (T-1). As indicated in Annex XL - Instructions for disclosure of ESG risk, instructions to template 8 - GAR (%), institutions shall disclose the GAR as referred to in Delegated Regulation (EU) 2021/2178. In this sense, the calculations under Pillar 3 framework shall be aligned with the ones performed under the Delegated Regulation (EU) 2021/2178.