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Low Carbon Benchmarks Regulation In force Unlisted

Overview

Jurisdiction
European Union
Topic
-
Instrument type
Regulation
Reference number
2019/2089
Valid from
2019-12-10
Valid to
2021-01-01
Modified date
2019-11-27
Listed at
Unlisted draft
Withdrawn at
-
Description
Amends the EU Benchmarks Regulation by introducing requirements for EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks, and sustainability-related disclosures and methodology transparency.

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Sources

Source URL Crawler Publish date
https://publications.europa.eu/resource/celex/32019R2089 EUR-Lex Crawl 2019-11-27

Logs

Type Status Started at Finished at
No jobs yet.

Rule sets

Label Effective
Administrators of EU Climate Transition or EU Paris-aligned Benchmarks 2020-04-30 — 9999-12-31
Applies from milestone:
Application Start (2020-04-30)
Expires at milestone:
-
Conditions:
  • Activities contains No Linked Attribute Value “providing EU Climate Transition Benchmarks” “contributing to EU Climate Transition Benchmarks” “providing EU Paris-aligned Benchmarks” “contributing to EU Paris-aligned Benchmarks”
Administrators of EU Climate Transition Benchmarks 2022-12-31 — 9999-12-31
Applies from milestone:
Application Start (2022-12-31)
Expires at milestone:
-
Conditions:
  • Activities contains No Linked Attribute Value “providing EU Climate Transition Benchmarks”
Administrators of other benchmarks subject to ESG reporting duties 2020-04-30 — 9999-12-31
Applies from milestone:
Application Start (2020-04-30)
Expires at milestone:
-
Conditions:
  • Activities contains No Linked Attribute Value “providing benchmarks” “providing benchmark families”
  • Products not in No Linked Attribute Value “interest rate benchmarks” “foreign exchange benchmarks”
Union-based administrators of significant benchmarks 2022-01-01 — 9999-12-31
Applies from milestone:
Application Start (2022-01-01)
Expires at milestone:
-
Conditions:
  • EU member
  • Activities contains No Linked Attribute Value “providing significant benchmarks based on underlying asset values” “providing significant benchmarks based on prices”

Questions this regulation asks

Attributes only this regulation asks about — criteria no general attribute expresses. A company answers each once.

This regulation asks no questions of its own — every condition uses a general attribute.

Obligations

Title Kind Rule set
Compliance with requirements for sustainability-related benchmarks Governance -
Description:
Comply with the requirements of this Regulation and Annex III when providing or contributing to EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks.
Frequency:
Continuous
Check frequency:
One-time
Products/Services:
EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks
Checking responsibility:
Benchmark administrator
Check method:
Review of the benchmark methodology and compliance with the Regulation by the competent authority.
Rule set:
-
Source reference:
Article 19a(1)
Source excerpt:
The requirements laid down in Annex III shall apply to the provision of, and contribution to, EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks, in addition to the requirements of Titles II, III and IV.
Explanation of ESG factors in the methodology Reporting -
Description:
Explain in the benchmark statement how the key elements of the methodology reflect ESG factors.
Frequency:
One-time
Check frequency:
One-time
Products/Services:
Each benchmark or family of benchmarks, except interest rate and foreign exchange benchmarks
Checking responsibility:
Benchmark administrator
Check method:
Review of the benchmark statement and the methodology explanation contained in it.
Rule set:
-
Source reference:
Article 13(1)(d)
Source excerpt:
an explanation of how the key elements of the methodology laid down in point (a) reflect ESG factors for each benchmark or family of benchmarks, with the exception of interest rate and foreign exchange benchmarks.
ESG disclosures in benchmark statements Reporting -
Description:
By 30 April 2020, explain in the benchmark statement how ESG factors are reflected and, where applicable, state that no ESG objectives are pursued or that no relevant benchmark is available.
Frequency:
One-time
Check frequency:
One-time
Products/Services:
Each benchmark or family of benchmarks for which a benchmark statement is required
Checking responsibility:
Benchmark administrator
Check method:
Review of the benchmark statement for the required ESG and climate information.
Rule set:
-
Source reference:
Article 27(2a)
Source excerpt:
By 30 April 2020, for each of the requirements referred to in paragraph 2, the benchmark statement shall contain an explanation of how ESG factors are reflected in each benchmark or family of benchmarks provided and published. For those benchmarks or families of benchmarks that do not pursue ESG objectives, it shall be sufficient for benchmark administrators to clearly state in the benchmark statement that they do not pursue such objectives.Where no EU Climate Transition Benchmark or EU Paris-aligned Benchmark is available in the portfolio of that individual benchmark administrator, or the individual benchmark administrator has no benchmarks that pursue ESG objectives or take into account ESG factors, this shall be stated in the benchmark statements of all benchmarks provided by that administrator.
Disclosure of climate alignment Reporting -
Description:
Disclose in the benchmark statement whether and to what extent overall alignment with carbon-emission reduction targets or the objectives of the Paris Agreement is ensured.
Frequency:
One-time
Check frequency:
One-time
Products/Services:
Significant equity and bond benchmarks and EU Climate Transition and EU Paris-aligned Benchmarks
Checking responsibility:
Benchmark administrator
Check method:
Review of the benchmark statement for information on alignment with emission-reduction and Paris objectives.
Rule set:
-
Source reference:
Article 27(2a)
Source excerpt:
For significant equity and bond benchmarks, as well as for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks, benchmark administrators shall disclose in their benchmark statements details on whether or not and to what extent a degree of overall alignment with the target of reducing carbon emissions or the attainment of the objectives of the Paris Agreement is ensured
Explanation of methodology alignment with climate objectives Reporting -
Description:
By 31 December 2021, include in the benchmark statement an explanation of how the methodology aligns with carbon-emission reduction targets or attains the objectives of the Paris Agreement.
Frequency:
One-time
Check frequency:
One-time
Products/Services:
Each benchmark or family of benchmarks, except interest rate and foreign exchange benchmarks
Checking responsibility:
Benchmark administrator
Check method:
Review of the methodology and benchmark statement.
Rule set:
-
Source reference:
Article 27(2a)
Source excerpt:
By 31 December 2021, benchmark administrators shall, for each benchmark or, where applicable, each family of benchmarks, with the exception of interest rate and foreign exchange benchmarks, include in their benchmark statement an explanation of how their methodology aligns with the target of carbon emission reductions or attains the objectives of the Paris Agreement.
Selection of assets following a decarbonisation trajectory Due Diligence -
Description:
By 31 December 2022, select, weight or exclude underlying assets issued by companies that follow a decarbonisation trajectory, applying the prescribed disclosure requirements.
Frequency:
One-time
Check frequency:
One-time
Products/Services:
EU Climate Transition Benchmarks
Checking responsibility:
Administrator of an EU Climate Transition Benchmark
Check method:
Review of asset selection, weighting and exclusion decisions and of company disclosures.
Rule set:
-
Source reference:
Article 19b
Source excerpt:
Administrators of EU Climate Transition Benchmarks shall select, weight, or exclude underlying assets issued by companies that follow a decarbonisation trajectory by 31 December 2022, in accordance with the following requirements:
Endeavour to provide an EU Climate Transition Benchmark Other -
Description:
Endeavour to provide one or more EU Climate Transition Benchmarks.
Frequency:
One-time
Check frequency:
One-time
Products/Services:
Significant benchmarks determined on the basis of the value of underlying assets or prices
Checking responsibility:
Administrator of a significant benchmark located in the Union
Check method:
Review of whether the administrator provides or endeavours to provide one or more EU Climate Transition Benchmarks.
Rule set:
-
Source reference:
Article 19d
Source excerpt:
By 1 January 2022, administrators which are located in the Union and which provide significant benchmarks determined on the basis of the value of one or more underlying assets or prices shall endeavour to provide one or more EU Climate Transition Benchmarks.

Measures

No measures.

Penalties

Description Kind Rule set
For infringements of the relevant provisions, including Articles 13, 19a, 19b, 19c and 27, Member States must empower competent authorities to impose appropriate administrative sanctions and other administrative measures. Other -
Responsible authority:
Competent authorities designated by Member States
Source reference:
Article 42(1)(a)
Source excerpt:
Member States shall, in conformity with national law, provide for competent authorities to have the power to impose appropriate administrative sanctions and other administrative measures in relation to at least the following infringements: any infringement of Article 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 19a, 19b, 19c, 21, 23, 24, 25, 26, 27, 28, 29 or 34 where they apply
In addition to administrative sanctions, Member States may provide for and impose criminal sanctions for infringements. Criminal Liability -
Responsible authority:
Member States and competent authorities under national law
Source reference:
Article 42(1)
Source excerpt:
Without prejudice to the supervisory powers of competent authorities in accordance with Article 41, and the right of Member States to provide for and impose criminal sanctions

Milestones

Date Type Description
2019-12-10 Other Start of the five-year delegation period for adopting delegated acts.
Source reference:
Article 49(2)
Source excerpt:
The power to adopt delegated acts referred to in Articles 3(2), 13(2a), 19a(2), 19c(1), 20(6), 24(2), 27(2b), 33(7), 51(6) and 54(3) shall be conferred on the Commission for a period of five years from 10 December 2019.
2020-04-30 Application Start Deadline for benchmark administrators to comply with the ESG methodology explanation and certain benchmark statement requirements.
Source reference:
Article 13(1)(d)
Source excerpt:
Benchmark administrators shall comply with the requirement laid down in point (d) of the first subparagraph by 30 April 2020.
2020-04-30 Application Start Deadline for benchmark administrators to comply with the additional requirements for EU Climate Transition and EU Paris-aligned Benchmarks.
Source reference:
Article 19a(3)
Source excerpt:
Benchmark administrators which provide an EU Climate Transition Benchmark or an EU Paris-aligned Benchmark shall comply with this Regulation by 30 April 2020.
2021-01-01 Other Commission deadline for adopting a delegated act identifying sectors to be excluded from EU Paris-aligned Benchmarks.
Source reference:
Article 19c(1)
Source excerpt:
The Commission shall adopt that delegated act by 1 January 2021 and update it every three years.
2021-12-31 Application Start Deadline for benchmark administrators to include an explanation of methodology alignment with climate objectives in benchmark statements.
Source reference:
Article 27(2a)
Source excerpt:
By 31 December 2021, benchmark administrators shall, for each benchmark or, where applicable, each family of benchmarks, with the exception of interest rate and foreign exchange benchmarks, include in their benchmark statement an explanation of how their methodology aligns with the target of carbon emission reductions or attains the objectives of the Paris Agreement.
2021-12-31 Other End of the transitional regime for certain existing critical benchmarks and their use.
Source reference:
Article 51(4a)
Source excerpt:
An index provider may continue to provide an existing benchmark that has been recognised as a critical benchmark by an implementing act adopted by the Commission in accordance with Article 20 until 31 December 2021 or, where the index provider submits an application for authorisation in accordance with paragraph 1, unless and until such authorisation is refused.
2022-01-01 Application Start Deadline for Union-based administrators of significant benchmarks to endeavour to provide one or more EU Climate Transition Benchmarks.
Source reference:
Article 19d
Source excerpt:
By 1 January 2022, administrators which are located in the Union and which provide significant benchmarks determined on the basis of the value of one or more underlying assets or prices shall endeavour to provide one or more EU Climate Transition Benchmarks.
2022-12-31 Application Start Deadline for selecting, weighting or excluding assets issued by companies following a decarbonisation trajectory for EU Climate Transition Benchmarks.
Source reference:
Article 19b
Source excerpt:
Administrators of EU Climate Transition Benchmarks shall select, weight, or exclude underlying assets issued by companies that follow a decarbonisation trajectory by 31 December 2022, in accordance with the following requirements:

Linked regulations

Type Regulation
Amends Regulation (EU) 2016/1011
Cites Sustainable Finance Disclosure Regulation
Cites Council Decision (EU) 2016/1841
Cites Decision No 1386/2013/EU
Cites Commission Recommendation 2013/179/EU
Cites Directive (EU) 2016/943