Investor Presentaiton
Low Carbon Benchmarks Regulation
KPMG
The Low Carbon Benchmarks Regulation amends the existing
EU Benchmark Regulation by introducing two new types of
benchmarks:
EU Climate Transition benchmarks; and
EU Paris-aligned benchmarks.
In addition to the introduction of these new benchmarks, the
amendments require benchmark administrators to update all
benchmark statements (excluding those relating to interest rate
and currency benchmarks) by 30 April 2020 to include "...how
ESG factors are reflected in each benchmark ...".
For benchmarks that do not pursue ESG objectives, it will be
sufficient "... to clearly state in the benchmark statement that
they do not pursue such objectives". Benchmark administrators
that pursue ESG objectives will be required to publish key
elements of their methodologies.
The Commission will adopt delegated acts to provide further
detail on the minimum standards for each of the new
benchmarks and the requirements applicable to benchmark
administrators. Administrators of significant benchmarks ie,
benchmarks that are above a certain threshold in terms of
usage, will be required to disclose the degree of "Paris
alignment" of those benchmarks and must endeavour to
provide a Transition benchmark by 1 January 2022.
The Low Carbon Benchmarks Regulation entered into force on
10 December 2019.
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