EBA · 2024_7102 Rejected question

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

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
449a
Topic
Transparency and Pillar 3
Submitted by
Credit institution
Submitted
2024-06-03
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Question

Is it allowed to use another scenario than those prescribed by the IEA, as long as it is compatible with 1.5C trajectory and clearly documented in the narratives?

Background

Due to industry specific principles (such as Poseidon Principles) and past commitments, banks have developed transition plans which do not use the NZA scenario prescribed by the IEA but other scenarios which can still be compatible with 1.5C trajectory. In some cases, redeveloping transition plans with new scenario is extremely challenging and would require a fundamental change of the strategy of the bank with respect to certain sectors.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2024_7102

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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