According to European Banking Authority (EBA) chairman Jose Manuel Campa, European banks need to stop complaining that a new environmental, social, and governance (ESG) rule will make them “look bad” and accept that they will need to start reporting additional data in a few months.
The metric in question is the green asset ratio (GAR), with mandatory disclosure set to kick in from January. Supported by the European Central Bank and lambasted by the finance industry, the ratio reflects the share of a bank’s balance sheet that aligns with the European Union’s (EU) list of sustainable business activities.
