ESBG stresses the need for consistency and clarity in its Response to the SFDR Review Consultation

Topic: Sustainable Finance

ESBG stresses the need for consistency and clarity in its Response to the SFDR Review Consultation

On 14 December, ESBG submitted its feedback on the Sustainable Finance Disclosure Regulation (SFDR) review, emphasizing the need for updates to enhance framework consistency and clarity. While supporting SFDR’s transparency goals, ESBG notes disproportionate costs compared to benefits, impacting resource allocation and causing challenges for financial market participants. The organization urges careful consideration of future changes to avoid complexity, implementation difficulties, and customer fatigue.

ESBG highlights retail clients’ struggle to comprehend diverse sustainability definitions across EU initiatives, leading to inconsistencies, double reporting, legal uncertainties, and accusations of greenwashing. The organization recommends reducing mandatory PAI indicators, focusing on generally relevant ones to minimize investor misinterpretations.
Simplifying entity disclosure requirements is deemed necessary to address the complexity of information available in the market, particularly for retail customers. ESBG acknowledges the challenge of obtaining reliable data outside the EU and methodological issues related to PAI indicators for the principle of no significant harm to the environment.

ESBG supports a categorization system for financial products but emphasizes careful design to ensure investor understanding, market integrity, and alignment with other regulations, notably MiFID II. Lastly, ESBG stresses that the SFDR should better reflect the notion of transition, as the current binary approach to sustainable vs. non-sustainable investments lacks nuance

Executive Summary PDFFull Position Paper

Contact Info

Adrien Boudet
Associate Advisor- Sustainable Finance
e.: adrien.boudet@wsbi-esbg.org
t.: +32 2 211 11 63


Edición española

WSBI ESBG

Month: December 2023

ÍNDICE
• WSBI aboga por las PYME dirigidas por mujeres y la inclusión financiera (p. 2)
• Los bancos miembros de WSBI brillan en el Foro de Financiación de PYME de 2023 (p. 2)
• La dirección estratégica del Comité de Basilea en respuesta a los desafíos bancarios mundiales (p. 2)
• Una charla exclusiva con el visionario Consejero Delegado de CaixaBank (p. 3)
• Estándares Europeos de Informes de Sostenibilidad: un paso hacia la transparencia
y la simplicidad (p. 4)
• Directiva renovada sobre Crédito al Consumo (p. 5)
• El papel del marketing digital en la carrera ESG (p. 5)
• resumen del evento de fin de año de WSBI en la región asiática (p. 6)
• WSBI amplía su red mundial con la inclusión de Kirguistán y Suiza (p. 6)
• Navegando por el futuro de la resolución bancaria con Dominique Laboureix (p. 7)
• Bancos latinoamericanos reafirman su compromiso con la educación e inclusión financiera (p. 8)
• ESBG a la vanguardia: dar forma a la educación financiera a nivel mundial en 2023 (p. 8)

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English edition

WSBI ESBG

Month: December 2023

WHAT’S INSIDE?
• WSBI Advocates for Women-Led MSMEs and Financial Inclusion (p. 2)
• WSBI Member Banks Shine at SME Finance Forum 2023 (p. 2)
• Basel Committee’s Strategic Direction in Response to Global Banking Challenges (p. 2)
• An Exclusive Chat with CaixaBank’s Visionary CEO (p. 3)
• EU’s Sustainable Reporting Standards: A Step Towards Transparency and Simplicity (p. 4)
• Revamped CCD: A Leap Forward in European Consumer Protection (p. 5)
• The role of digital marketing in the ESG race (p. 5)
• A Recap of WSBI’s Asia Region Year-End Event (p. 6)
• WSBI Expands Its Global Network with Kyrgyzstan & Switzerland (p. 6)
• Navigating the Future of EU Banking Resolution with Dominique Laboureix (p. 7)
• Latin American banks reaffirm their commitment to financial education and inclusion (p. 8)
• ESBG at the Forefront: Shaping Financial Literacy Globally in 2023 (p. 8)

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Edizione italiana

WSBI ESBG

Month: December 2023

ALL’INTERNO
• WSBI sostiene le PMI a conduzione femminile e l’inclusione finanziaria nel Forum globale sulla
finanza delle PMI del 2023 (p.2)
• Una direzione strategica del Comitato di Basilea per far fronte alle sfide bancarie globali (p.2)
• Quattro chiacchiere con il visionario CEO di CaixaBank (p.3)
• Standard UE per la rendicontazione di sostenibilità: un passo verso la trasparenza e la semplicità (p.4)
• La nuova direttiva sul credito al consumo: ancora un passo in avanti nella tutela dei consumatori
europei (p.5)
• Il ruolo del digital marketing nella corsa all’ESG (p.5)
• Un resoconto dell’evento di fine anno del WSBI per la Regione asiatica (p.6)
• La rete globale continua a crescere: il WSBI dà il benvenuto a Kirghizistan e Svizzera (p.6)
• Navigare nel futuro della risoluzione bancaria con Dominique Laboureix (p.7)
• Le banche latinoamericane rinnovano il loro impegno per l’educazione e l’inclusione finanziaria (p.8)
• Nel 2023, l’ESBG in prima linea per uniformare l’alfabetizzazione finanziaria globale (p.8)

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Edition française

WSBI ESBG

Month: December 2023

APERÇU
• WSBI plaide en faveur des MPME dirigées par des femmes et de l’inclusion financière (p.2)
• Les banques membres du WSBI brillent au Forum sur le financement des PME 2023 (p.2)
• L’orientation stratégique du Comité de Bâle en réponse aux défis bancaires mondiaux (p.2)
• Entretien exclusif avec le PDG visionnaire de CaixaBank (p.3)
• Les normes européennes du reporting de durabilité : un pas en avant vers la transparence et la simplicité (p.4)
• Un pas en avant vers la protection des consommateurs européens (p.5)
• Le rôle du marketing numérique dans la course aux ESG (p.5)
• Réimaginer la banque en Asie : un résumé de l’événement de fin d’année du WSBI pour la région Asie (p.6)
• Le WSBI étend son réseau mondial avec l’inclusion du Kirghizistan et de la Suisse (p.6)
• Cap sur le futur de la résolution bancaire avec Dominique Laboureix (p.7)
• Les banques d’Amérique latine réaffirment leur engagement en faveur de l’éducation et de l’inclusion
financières (p.8)
• L’ESBG à l’avant-garde dans la promotion de la littératie financière à travers le monde en 2023 (p.8)

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ESBG Advocates Clarity and Harmony in EU Taxonomy Implementation

Topic: Sustainable Finance

ESBG Advocates Clarity and Harmony in EU Taxonomy Implementation

ESBG remains committed to ensuring a clear and effective regulatory framework. In line with this commitment, ESBG has responded to the recent Commission consultation on developing or revising technical screening criteria for a given economic activity of the EU Taxonomy.

The Commission, seeking insights from stakeholders, opened discussions on the potential development or revision of technical screening criteria for specific economic activities within the EU Taxonomy. ESBG has seized this opportunity to contribute perspectives and emphasize key points relevant to the evolving financial landscape.

One primary concern highlighted by ESBG pertains to the lack of clear guidance and specifications in the Disclosures Delegated Act (Commission Delegated Regulation (EU) 2021/2178 and its subsequent amendments). This deficiency is causing financial undertakings:

Legal Uncertainty and Implementation Effort: The absence of clear guidance is leading to legal uncertainty and unnecessary implementation efforts.

Lack of Comparability: The current state of the Taxonomy templates in Annex V and XII results in a lack of comparability in the disclosed Taxonomy information.

To address these issues, ESBG recommends the publication of:

Formulas and Validation Rules: Clear formulas for calculating each datapoint of the quantitative templates and validation rules.

Guidance Documents: A minimum set of guidance documents, akin to the approach taken by the European Banking Authority (EBA) for FINREP and COREP reporting.

ESBG emphasizes that the publication of templates, validation rules, arithmetic calculations, and relationships between datapoints is crucial for the utility of financial undertakings.

ESBG also draws attention to the issue of legal fragmentation concerning Green Asset Ratio (GAR) Key Performance Indicators (KPIs). These KPIs are being developed by two different regulators: the European Commission (management report) and the EBA (Pillar 3 report). This situation introduces overlaps, inconsistencies, and coordination challenges between two sets of reporting requirements that, in essence, should be identical. ESBG stresses the need for enhanced coordination and consistency to streamline reporting obligations for financial institutions.

In addition to regulatory concerns, ESBG highlights challenges faced by banks in financing projects related to sectors such as water. Clients in these sectors often encounter difficulties, including a lack of information on energy consumption and the inability to calculate certain impact metrics. These challenges hinder clients from financing themselves under the Taxonomy umbrella. ESBG encourages further guidance and support in addressing these issues to facilitate smoother financing processes.

Executive Summary PDFFull Position Paper

Isidro Fainé will promote the social commitment of international banking from the World Savings Banks and Retail Banking Institute (WSBI)

The Chairman of CECA and the “la Caixa” Foundation, Isidro Fainé, has been appointed Chairman of the new Social and Philanthropic Council of the European Savings and Retail Banking Group (ESBG) and the World Savings and Retail Banking Institute (WSBI), of which Fainé is Vice-Chairman and Chairman, respectively. The German Helmut Schleweis, chairman of the German Savings Banks Association, has been appointed honorary chairman of the Social and Philanthropic Council. The appointments are to be ratified by the WSBI Council, which will take place in the coming weeks.

WSBI, which will celebrate its centenary in 2024, is the world’s largest retail banking association. Founded in Milan in 1924, it currently has 96 members from 71 countries and includes almost 6,400 financial institutions and retail banks, with a total of 2.1 million employees and $13.25 trillion in assets.

The new Social and Philanthropic Council was established at the WSBI Board of Directors meeting in Marrakech last October. The creation of the Social and Philanthropic Council represents a step forward for WSBI and its members in their strategy towards a more engaged and socially conscious approach to the global financial landscape.

The main functions of the new Council will be to lead and promote the social work carried out by WSBI members, giving visibility to the entity’s actions in the social field, reinforcing its role, and at the same time fostering the exchange of experiences and knowledge, and promoting cooperation between members to develop joint initiatives. The members of the WSBI as a whole devote 2.8 billion dollars a year to social work and corporate social responsibility around the world.

Foundations linked to the banks and savings banks that are members of the WSBI may form part of this Board. This is the case of the “la Caixa” Foundation, which will study ways of collaborating with the WSBI through the Social and Philanthropic Council. In this way, the “la Caixa” Foundation will foster new relationships with other foundations and international organisations, which will join its extensive network of collaborators.

About CECA

CECA is the association of saving and retail banks that defends the interests of retail and saving banks and promotes their mission through their financial and social work.

About WSBI

WSBI, was born in 1924, representing the interests of 6.400 worldwide saving and retail banks. The WSBI members have 13.25 trillion dollars in assets, providing employment to 2,1 million people with a total of 1400 million of clients in 71 countries. They offer their banking services to all type of institutions, big companies, SMEs and families with a network of 221.577 offices.

Media Contacts :

WSBI (The World Savings and Retail Banking Institute)

Nihan Çevirgen

nihan.cevirgen@wsbi-esbg.org / Tel. +32 2 211 1190

CECA Communications Department

Mónica Malo

comunica@ceca.es/ Tel. +34 699 534 065

Fundación “la Caixa” Communications Department

Marc Gómez

marc.gomez@fundacionlacaixa.org / Tel. +34 659 57 63 80

Leticia Gonzálvez

lgonzalvez@fundacionlacaixa.org / Tel. +34 649 254 091

Media Coverage


ESBG advocates for harmonized reporting as part of the Common Data Dictionary

Topic: Supervisory Reporting

On 29 November, ESBG responded to the European Commission’s invitation for feedback on the Common Data Dictionary (CDD), a significant element in the EU’s financial services landscape. The CDD, discussed in a recent virtual workshop by the Directorate General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA), aligns with the Commission’s supervisory data strategy, striving for consistency in reporting requirements and data standardization.

In this context, ESBG views the CDD as a means to establish a shared language, simplifying interpretations, reducing discrepancies, and facilitating data reuse, particularly beneficial for financial conglomerates. It underscores the importance of use cases such as group consolidated statements’ standardization and merger information simplification. Additionally, ESBG proposes expanding the CDD’s scope to include end-to-end reporting solutions, integrating features like conceptual family domains.

Furthermore, ESBG delves into the components of the Data Dictionary, emphasizing the significance of the Data Catalogue and suggesting clarifications on the role of Assertions/Transformation. It advocates for machine-readable and machine-executable requirements, proposing a staged implementation prioritizing key elements like ISIN and LEI codes. While expressing support for the initiative, ESBG seeks clarification on the necessity of the Data Catalogue and emphasizes the importance of strategic clarity and stakeholder involvement for successful implementation.

ESBG also recognizes the necessity of cross-sectoral development but cautions about potential timing-related costs for entities. Moreover, it stresses the need for coordination to avoid additional regulatory developments during CDD implementation, minimizing duplication of costs and resources. Addressing challenges related to property types within operational limitations is essential.

Overall, ESBG underscores the significance of the CDD in creating a unified common dictionary across EU financial services, promoting consistency, efficiency, and shared standards in reporting.

Executive SummaryFull Position Paper

Contact Info:
Andreea Lungu
Advisor- Financial Reporting And Taxation
e.: andreea.lungu@wsbi-esbg.org
t. : +32 2 211 11 64

related


ESBG Retail Banking Conference 2023

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Thank you for joining us for such a great event.

The record will be available soon on our Youtube Channel.

ESBG Retail Banking Conference 2023

The conference will be moderated by Chris Burns

#ESBGRetailbank2023

Since 2008 (with the exception of 2020 and 2021 Covid years) ESBG has been organising the well- renowned Retail Banking Conference in Brussels, as a hallmark of the Retail Banking sector in the European agenda.

This year Retail Banking Conference will count with top speakers from EU institutions ( FISMA, ECB, EBA, MEPS, Commissioner McGuiness Cabinet, ESMA), ISSB, International Monetary Fund and leading private industry top managers. This conference will also delve into the Retail Investment Strategy, Open Finance and Sustainable Finance and their impact in the retail banking sector.

Agenda at a glance

Opening speech
Peter Simon,
ESBG Managing Director

Keynote Speech
François-Louis Michaud,
Executive Director, European Banking Authority (EBA)

Panel I – Retail Banking in the framework of the Retail Investment Strategy

Thomas Matis, Senior Manager Financial Services at KPMG AG WPG
15 min presentation of KPMG Inducement study

MEP Stéphanie Yon-Courtin, Rapporteur Retail Investment Strategy
Evert van Walsum, Head of the Investor Protection and Sustainable Finance Department, European Securities Market authority (ESMA)
Christian E. Castro, Head of Public Affairs at CaixaBank

Panel II – Disruption vs Tradition : Open Finance

Fiona Van Echelpoel, Deputy Director General, Market Infrastructure and Payments at the ECB, European Central Bank
Peter Kerstens, Advisor on Technological Innovation and Cyber Security, FISMA, European Commission
Erik Ljungberg, Head of Group Brand, Communication and Sustainability, Swedbank
Andrea Tessera, Head of Innovation in Banca Sella

Moderator
Diederik Bruggink – Head of Department – Payments, Digital Finance and Innovation

Fireside Chat:
Arianna Vannini, Chief Economist DG INTPA, International Partnerships European Commission
Q&A

Keynote Speach:
Spanish Presidency’s Banking regulation overall conclusions:
Ana Puente Pérez, Head of Sustainable and Digital Finance at Spanish Ministry of Economic Affairs and Digital Transformation
Q&A

Panel III – Retail Banking an effective vehicle for Sustainable Finance

Marcel Haag, Director General Horizontal Policies , FISMA, European Commission
Veronika Pountcheva, Board member ISSB (International Sustainability Standards Board)
David Lukáš Rozumek, Senior Financial Sector Expert. Financial Supervision & Regulation Division (MCM-FR).
Karolin Schriever, Executive Board Member, DSGV, German Savings Bank Association

Keynote speech:
Overview of the financial banking legislative files expected evolution in the next months.
Patricia Reilly, Head of Cabinet of Commissioner McGuinness, Financial services, financial stability and Capital Markets Union- European Commission
Q&A

Concluding Remarks
Dominique Goursolle-Nouhaud, President ESBG, European Saving and Retail Banking Group

How to get there