Legislation

The EU has specific directives and regulations, which encourage sustainable activities as well as green investment and financing. The losses to financial markets caused by the intensity of climate change and the impact of the transition to a green economy as well as that of carrying out their own activities are increasingly of concern to the monetary and regulatory authorities, as well as to the international financial institutions.

EU legislative acts in force:

Regulation (EU) 2021/637 laying down implementing technical standards regarding to public disclosures by financial institutions;
Directiva UE 2023/970 to strengthen the application of the principle of equal work and work of equal value between men and women through pay transparency and enforcement mechanisms, May 2023;
EU Corporate sustainability reporting directive no. 2022/2464 (CSRD) amending Regulation EU No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting - companies will have to report on how their business model affects their sustainability, and on how external sustainability factors (such as climate change or human right issues) influence their activities. The CSRD introduces more detailed reporting requirements and ensures that large companies and listed SMEs are required to report on sustainability matters such as environmental rights, social rights, human rights and governance factors.
Directive 2014/95/EU amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups (NFRD) - lays down the rules of publishing non-financial and diversity information, by certain large companies. This directive was transposed into the accounting regulation applicable to the entities within NBR's accounting regulatory scope by issuing NBR Order No. 7/2016 amending and supplementing NBR Order No. 27/2010 approving the Accounting Regulations consistent with the International Financial Reporting Standards, applicable to credit institutions, and NBR Order No. 6/2015 (Romanian version only) approving Accounting Regulations consistent with European directives.
Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (Taxonomy) – aims to introduce a unified classification system for sustainable investment, which would provide a consistent understanding of the notion of "ESG". This Regulation also applies to undertakings subject to the obligation to publish a non-financial statement or a consolidated non-financial statement pursuant to Article 19a or Article 29a of Directive 2013/34/EU, and therefore covers the entities within the NBR’s accounting regulatory scope. According to Article 8 of the Regulation, these undertakings disclose in the non-financial statement how and to what extent their activities are associated with environmentally sustainable economic activities.
Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of the information to be disclosed by undertakings subject to Article 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation. This delegated regulation is issued pursuant to Article 8 of Regulation (EU) 2020/852, one of its objectives being to specify the content and presentation of information to be disclosed by financial companies, given that Regulation (EU) 2020/852 requires non-financial undertakings to disclose information on the proportion of the turnover, capital expenditure and operating expenditure of their activities related to assets or processes associated with environmentally sustainable economic activities. That provision, however, does not specify equivalent key performance indicators for financial undertakings.
EU Regulation 2019/2088 on information on sustainability-related disclosures in the financial services sector (SFDR) lays down harmonised rules for financial market participants (including credit institutions providing portfolio management services and credit institutions providing investment advice) on transparency with regard to the integration of sustainability risks and the consideration of adverse sustainability impacts in their processes and the provision of sustainability-related information with respect to financial products.
Regulation (EU) 2019/2089 of the European Parliament and of the Council of 27 November 2019 amending Regulation (EU) 2016/1011 as regards EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks.
Commission Delegated Directive (EU) 2021/1269 of 21 April 2021 amending Delegated Directive (EU) 2017/593 as regards the integration of sustainability factors into product governance obligations.
Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814.
Directive (EU) 2018/2002 of the European Parliament and of the Council of 11 December 2018 amending Directive 2012/27/EU on energy efficiency.
Directive (EU) 2018/844 of the European Parliament and of the Council of 30 May 2018 amending Directive 2010/31/EU on the energy performance of buildings and Directive 2012/27/EU on energy efficiency.
Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure.

National legislative acts in force:

Romanian Government- Decision no. 1117/2023 regarding the approval of the Methodology for sustainability reporting - Romanian Sustainability Code, November 2023
Romanian Government, Department for Sustainable Development "Methodology for sustainability reporting - Romanian Sustainability Code (CRS)", November 2023.

NBR Regulations/Instructions associated with sustainability and green economy:

NBR order no. 4/2023 on the reporting exercises by credit institutions of information on the remuneration of staff members, as well as on the difference in remuneration between male and female staff members, (Romanian only)

Regulations/Recommendations of European and international authorities in the financial field:

Decision of the European Banking Authority EBA/DC/498 concerning ad hoc collection by competent authorities to the EBA of institutions’ ESG data and amendment of the Annex to EUCLID Decision, July 2023;
New Global Sustainability Disclosure Standards issued by International Sustainability Standards Board, June 2023;
European Sustainability Reporting Standards (ESRS), July 2023;
European Council: Sustainable Finance package, June 2023;
European Council: Carbon Border Adjustment Mechanism, April 2023;