The rule in plain words
None of the values it checks in banking book- Indicators of potential climate change transition risk can be negative.
EBA checks it for three columns: GHG financed emissions (scope 1, scope 2 and scope 3 emissions of the counterparty) (in tons of CO2 equivalent), scope 3 financed emissions, and GHG emissions (column i): gross carrying amount percentage of the portfolio derived from company-specific reporting. And for 53 rows, from exposures towards sectors that highly contribute to climate change (0010) to total (0560). That makes 159 checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
GHG financed emissions (scope 1, scope 2 and scope 3 emissions of the counterparty) (in tons of CO2 equivalent): Exposures towards sectors that highly contribute to climate change >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark D 01.00 as reported.
- 05This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.
The cells it reads
Rows
- 0010Exposures towards sectors that highly contribute to climate change
- 0020A - Agriculture, forestry and fishing
- 0030B - Mining and quarrying
- 0040B.05 - Mining of coal and lignite
- 0050B.06 - Extraction of crude petroleum and natural gas
- 0060B.07 - Mining of metal ores
- 0070B.08 - Other mining and quarrying
- 0080B.09 - Mining support service activities
- 0090C - Manufacturing
- 0100C.10 - Manufacture of food products
- 0110C.11 - Manufacture of beverages
- 0120C.12 - Manufacture of tobacco products
- 0130C.13 - Manufacture of textiles
- 0140C.14 - Manufacture of wearing apparel
- 0150C.15 - Manufacture of leather and related products
- 0160C.16 - Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
- 0170C.17 - Manufacture of paper and paper products
- 0180C.18 - Printing and reproduction of recorded media
- 0190C.19 - Manufacture of coke and refined petroleum products
- 0200C.20 - Manufacture of chemicals and chemical products
- 0210C.21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations
- 0220C.22 - Manufacture of rubber products
- 0230C.23 - Manufacture of other non-metallic mineral products
- 0240C.24 - Manufacture of basic metals
- 0250C.25 - Manufacture of fabricated metal products, except machinery and equipment
- 0260C.26 - Manufacture of computer, electronic and optical products
- 0270C.27 - Manufacture of electrical equipment
- 0280C.28 - Manufacture of machinery and equipment n.e.c.
- 0290C.29 - Manufacture of motor vehicles, trailers and semi-trailers
- 0300C.30 - Manufacture of other transport equipment
- 0310C.31 - Manufacture of furniture
- 0320C.32 - Other manufacturing
- 0330C.33 - Repair and installation of machinery and equipment
- 0340D - Electricity, gas, steam and air conditioning supply
- 0350D35.1 - Electric power generation, transmission and distribution
- 0360D35.11 - Production of electricity
- 0370D35.2 - Manufacture of gas; distribution of gaseous fuels through mains
- 0380D35.3 - Steam and air conditioning supply
- 0390E - Water supply; sewerage, waste management and remediation activities
- 0400F - Construction
And 13 more.
Columns
- 0090GHG financed emissions (scope 1, scope 2 and scope 3 emissions of the counterparty) (in tons of CO2 equivalent)
- 0100Of which Scope 3 financed emissions
- 0110GHG emissions (column i): gross carrying amount percentage of the portfolio derived from company-specific reporting
A worked example
The first of its checks, with simple numbers.
Exposures towards sectors that highly contribute to climate change, GHG financed emissions (scope 1, scope 2 and scope 3 emissions of the counterparty) (in tons of CO2 equivalent) must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{D_01.00,r0010,c0090,} >= 0The next five:
{D_01.00,r0010,c0100,} >= 0{D_01.00,r0010,c0110,} >= 0{D_01.00,r0020,c0090,} >= 0{D_01.00,r0020,c0100,} >= 0{D_01.00,r0020,c0110,} >= 0And 153 more, the same formula for the other cells it covers.
Other rules on D 01.00
- None of the 560 values it checks in banking book- Indicators of potential climate change transition risk can be negative (v12826_s)Warning
- Each of the 168 values it checks in banking book- Indicators of potential climate change transition risk cannot be more than zero (v12828_s)Warning
- Gross carrying amount (Mln EUR) must equal the sum of its four parts (v12725_m)Warning
- Total must equal the sum of its two parts (v12722_m)Warning
- Exposures towards sectors that highly contribute to climate change cannot be more than total (v89229_m)Warning
- Gross carrying amount (Mln EUR) cannot be less than environmentally sustainable (CCM) (row 0010, v89230_m)Warning
- Agriculture, forestry and fishing cannot be more than total (v89231_m)Warning
- Gross carrying amount (Mln EUR) cannot be less than environmentally sustainable (CCM) (row 0020, v89232_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.