What is the GAR (Green Asset Ratio)?

It is a financial measure that is increasingly taking center stage

Financial supervisors have focused their attention on environmental, social and governance (ESG) risks. The European Banking Authority (EBA) has joined this effort by publishing technical standards on Third Pillar reporting for European Union entities. The standards propose comparable disclosures and key performance indicators, including a green asset ratio (GAR) and a bank portfolio taxonomy alignment coefficient (BTAR), as a tool to show how banks are integrating sustainability considerations into their risk management, business models and strategy.

EBA has also established disclosure deadlines, granular templates, tables and instructions to ensure greater consistency, comparability and usefulness of these disclosures by institutions.

Continue reading the news in Investment Strategies