Question
Regarding the data requirement, should all companies falling under the NACE codes defined in Template 3 be included, or can practicality be applied to specifically target companies for whom the transition risk metric is relevant?
Background on the question
We have noticed that there are various types of activities within sector NACE codes e.g., manufacturing, transportation, and services. Should the selected metric be limited to the main activity of each sector, or should we have multiple metrics for each activity within a sector. For example, within the steel industry, should it be limited only to steel producers to whom the intensity metric applies, or should it also include other entities such as steel refineries and industrial machinery companies within the broader sector category, where the applicability of the IEA metrics is not as evident?
Answer
This question has been rejected because the issue it deals with is already explained in the instructions of Template 3 “Banking book - Indicators of potential climate change transition risk: Alignment metrics” in Annex XL of Regulation (EU) 2021/637 (ITS on Pillar 3 disclosures) and Q&A 6843 provides further clarification.For further information on the purpose of this tool and on how to submit questions, please see 'Additional background and guidance for asking questions'.