On 3 May 2022, the European Supervisory Authorities issued a consultation paper seeking input on draft regulatory technical standards (RTS) on the content, methodologies and presentation of information in respect of the sustainability indicators for simple, transparent and standardised (STS) securitisations.
The draft RTS do not provide a framework for ‘sustainable securitisation’. Rather they provide the content, methodologies, and presentation of information about the principal adverse impacts on sustainability factors of the assets financed by the underlying exposures of securitisations. Their purpose is to standardise the type and presentation of the information an originator may choose to disclose about the adverse impacts of the assets financed by the underlying exposures on the climate and other sustainability factors. This will assist investors in measuring and comparing the negative impacts on sustainability factors caused by the assets financed by the underlying exposures and help financial market participants by providing a framework for measuring negative impacts.
The deadline for comments on the consultation is 2 July 2022.