Required ESG information comprises investment products and securities, including securitisations, and a look through to individual economic activities of companies. Standardisation of ESG information across Europe requires a consistent methodology for producing reliable and comparable ESG data points. Especially in the context of securitisation, Sustainable Finance does not yet provide a uniform framework for reporting and disclosure requirements.
In parallel to the legislative processes in the context of Sustainable Finance (see II. Regulation), which started for securitisations primarily in the second half of 2021, there was a significant decrease in public ABS transactions with an ESG label. In recent years, sustainability-oriented securitisations have generally accounted for a very small share of the market volume of all public ABS transactions.
