Investor Presentaiton
Sustainable
finance and ESG
As a member of the EU, the Czech Republic is also subject
to the new policies for sustainable finance introduced by the
European Commission following the EU Green Deal (2019),
fulfilling the commitments of the 2015 Paris Agreement.
As of 1 January 2022, the EU taxonomy is in force, defining
a framework for environmental objectives and setting rules
for mandatory disclosure. From 2023, the banking sector
will be obliged, inter alia, to determine and disclose the ratio
of financial assets including loans granted in accordance
with the EU taxonomy (green asset ratio [GAR]), while the
insurance sector will have to, among others, reveal the
volume of insurance premiums written corresponding to
activities in accordance with the EU taxonomy.
The obligation to disclose non-financial (ESG related)
information is expected to be extended in connection with
the harmonisation of the EU's Corporate Sustainability
Reporting Directive (CSRD) into the Czech Accounting Act.
Significant changes and extensions are to be expected
starting from 2023-2024.
In the Eurozone, the European Central Bank is stress-testing
climate risks in the banking sector. The results will affect
numerous banking entities in the Czech Republic primarily
through their parent banks. The Czech National Bank is
currently not applying locally specific sustainable finance or
ESG requirements.
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