Commission Delegated Regulation (EU) 2020/1817 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the minimum content of the explanation on how environmental, social and governance factors are reflected in the benchmark methodology (Text with EEA relevance)
Commission Delegated Regulation (EU) 2020/1817 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the minimum content of the explanation on how environmental, social and governance factors are reflected in the benchmark methodology (Text with EEA relevance)
Data as of 2026-07-04 · Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Explanation on how ESG factors are reflected in the benchmark methodology
1. Benchmark administrators shall explain, using the template laid down in the Annex to this Regulation, which of the environmental, social and governance (ESG) factors referred to in Annex II to Commission Delegated Regulation (EU) 2020/1816 ( 4 ) they have taken into account when designing their benchmark methodology. They shall also explain how those factors are reflected in the key elements of that methodology, including for the selection of underlying assets, weighting factors, metrics and proxies.
The requirement set out in the first subparagraph shall not apply to commodity benchmarks.
2. For individual benchmarks, benchmark administrators may, rather than providing all the information required by the template laid down in the Annex to this Regulation, replace that information by a hyperlink in the explanation provided, to a website that contains all that information.
3. Where benchmarks blend different types underlying assets, benchmark administrators shall explain how ESG factors are reflected for each of the relevant underlying asset.
4. Benchmark administrators may include in the explanation provided additional ESG factors and related information.
5. Benchmark administrators shall clearly state in the explanation provided whether they do or do not pursue ESG objectives.
6. Benchmark administrators shall include in the explanation provided a reference to the sources of data and standards used for each ESG factor disclosed.
Benchmark administrators shall update the explanation provided whenever the benchmark methodology is changed, and in any case on an annual basis. They shall state the reasons for the update.
ANNEX
TEMPLATE FOR EXPLAINING HOW THE KEY ELEMENTS OF THE BENCHMARK METHODOLOGY REFLECT ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) FACTORS
EXPLANATION OF HOW ESG FACTORS ARE REFLECTED IN THE KEY ELEMENTS OF THE BENCHMARK METHODOLOGY
Item 1 . Name of the benchmark administrator.
Item 2 . Type of benchmark or family of benchmarks.
Choose the relevant underlying asset from the list provided in Annex II to Commission Delegated Regulation (EU) 2020/1816.
Item 3 . Name of the benchmark or family of benchmarks.
Item 4 . Does the benchmark methodology for the benchmark or family of benchmarks take into account ESG factors?
☐ Yes ☐ No
Item 5 . Where the response to Item 4 is positive, please list below, for each family of benchmarks, those ESG factors that are taken into account in the benchmark methodology, taking into account the ESG factors listed in Annex II to Delegated Regulation (EU) 2020/1816.
Please explain how those ESG factors are used for the selection, weighting or exclusion of underlying assets.
The ESG factors shall be disclosed at an aggregated weighted average value at the level of the family of benchmarks.
(a)
List of environmental factors considered:
Selection, weighting or exclusion:
(b)
List of social factors considered:
Selection, weighting or exclusion:
(c)
List of governance factors considered:
Selection, weighting or exclusion:
Item 6 . Where the response to Item 4 is positive, please list below, for each benchmark, those ESG factors that are taken into account in the benchmark methodology, taking into account the ESG factors listed in Annex II to Delegated Regulation (EU) 2020/1816, depending on the relevant underlying asset concerned.
Please explain how those ESG factors are used for the selection, weighting or exclusion of underlying assets.
The ESG factors shall not be disclosed for each constituent of the benchmark, but shall be disclosed at an aggregated weighted average value of the benchmark.
Alternatively, all of this information may be provided in the form of a hyperlink to a website of the benchmark administrator included in this explanation. The information on the website shall be easily available and accessible. Benchmark administrators shall ensure that information published on their website remains available for five years.
(a)
List of environmental factors considered:
Selection, weighting or exclusion:
(b)
List of social factors considered:
Selection, weighting or exclusion:
(c)
List of governance factors considered:
Selection, weighting or exclusion:
Hyperlink to the information on ESG factors for each benchmark:
Item 7 . Data and standards used
(a)
Data input.
(i)
Describe whether the data are reported, modelled or sourced internally or externally.
(ii)
Where the data are reported, modelled or sourced externally, please name the third party data provider.
(b)
Verification and quality of data.
Describe how data are verified and how the quality of those data is ensured.
(c)
Reference standards
Describe the international standards used in the benchmark methodology.
Date on which information has been last updated and reason for the update:
