Practical approaches to applying EU sustainability taxonomy to bank lending
In a joint report, the European Banking Federation (EBF) and UNEP FI have outlined practical solutions for the application of the EU taxonomy in the banking sector. Supported by EY, 24 European banks and 12 banking associations, including LGT and the Liechtenstein Bankers Association (LBA), worked over several months on the report.
The findings of this report will support banks in understanding the EU Taxonomy, its requirements and its application for disclosure requirements which covers both mandatory and voluntary aspects.
The report explores several aspects of EU Taxonomy application to banking; it focuses on disclosure requirements under the EU Taxonomy Disclosure Delegated Act, how the EU Taxonomy could be further used to gather EU Taxonomy compatible information for banks clients who do not yet have an obligation to disclose, such as SMEs and non-EU companies, and addresses compliance with minimum safeguards of the Taxonomy regulation. The report also explores how the Taxonomy could be used by banks that wish to engage with clients whose economic activities are eligible for analysis under the EU Taxonomy, but are not yet aligned with the listed Technical Screening Criteria.
The Liechtenstein Bankers Association (LBA) and its members are committed to sustainable finance. Sustainability and sustainable investments therefore also form a central pillar of the Roadmap 2025 of the Liechtenstein banking centre. With LGT, VP Bank and LLB, all three major banks have already joined the so-called Net-Zero Banking Alliance in 2021 and have thus committed to an ambitious roadmap towards net zero. The LBA has joined the NZBA as a supporting organization.