ESG – Sustainable Securitisation Report

One of the amendments to the EU Securitisation Regulation¹ which came into force in April 2021 required the European Banking Authority ("EBA") to publish a report on developing a sustainable securitisation framework to integrate sustainability-related transparency requirements into the EU Securitisation Regulation. The EBA published this report, Developing a Framework for Sustainable Securitisation, on 2 March 2022 (the "Report").

In terms of the overall state of the EU sustainable securitisation market, the Report concludes its development to date (compared to the US and Chinese markets) has been hampered by a lack of available sustainable assets and the absence of a definition, standards, and data to foster transparency and credibility in the market.