ESMA_QA_867
01/04/2022
Subject Matter
ESG factors reflected in the benchmark statement and methodology (ESMA 70-145-114 QAs on BMRs Q&A 10.2)
    Does the Delegated Regulation (EU) 2020/1817 allow an administrator to take into account in the key elements of the methodology additional ESG factors not listed in the Delegated Regulation (EU) 2020/1816?
    ESMA Answer
    01-04-2022

      Yes.

      Article 1(4) of the Delegated Regulation (EU) 2020/1817 allows administrators to include in the explanation provided additional ESG factors that the administrator takes into account in its methodology together with the related information.

      Further, items 5 and 6 of the Annex of the Delegated Regulation (EU) 2020/1817 require administrators to list those ESG factors that are taken into account in the benchmark methodology, taking into account the ESG factors listed in Annex II of the Delegated Regulation (EU) 2020/1816.

      Therefore, ESMA considers that the list of ESG factors in Annex II of the Delegated Regulation (EU) 2020/1816 is not an exhaustive list to be considered for the methodology and that an administrator can take into account in the key elements of the methodology additional ESG factors that are not included in that list.

      Status: Answer Published

      Additional Information

      Level 1 Regulation
      Benchmarks Regulation (BMR) - Regulation 2016/1011
      Topic
      Climate Benchmarks