CECA gathers in Madrid to the Committees of Accounting and Audit and Sustainable Finances of the Savings Banks' European Association and Retail Banks

Ana Puente, Deputy Director General of Sustainable and Digital Finance in the Spanish Ministry of Economy, Trade and Enterprise, spoke at the meeting which was attended by over 25 representatives of various European countries' associations

The Accounting and Audit and Sustainable Finance Committees met in Madrid to address the main challenges facing European banks in terms of accounting and sustainability regulation

The event unpacked key reforms in international accounting, ESG lending and the inclusion of climate risk in financial statements

Madrid hosted the two-day meeting organised by CECA and the European Savings and Retail Banking Group (ESBG). The forum addressed the main challenges facing the financial industry in terms of accounting and sustainable finance regulation. The meeting was attended by Ana Puente Pérez, Deputy Director General of Sustainable and Digital Finance in the Spanish Ministry of Economy, Trade and Enterprise.

The session examined the Omnibus Package for regulatory simplification in sustainability, presented by the European Commission at the start of the year, which addresses amendments to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) designed to mainstream environmental and social criteria in the value chain.

In her address to the members of the two Committees, she said: "The climate or environmental objectives set by the European Union are not being challenged, the Green Deal is still in place. Neither has the role we would like the financial sector to play in channelling resources towards sustainable activities been questioned. What we are reviewing is how to achieve these goals, identifying whether compliance obligations jeopardise the competitiveness of businesses or financial institutions." She added that "we support the simplification measures proposed by the European Commission to enhance the legal framework for sustainable finance."

Sustainability at the core of the European debate on the financial industry's future

The conference kicked off with the 60th meeting of the Accounting and Audit Committee (ACC) which took stock of the latest developments in international accounting standards, paying special attention to the growing role of financial sustainability in an increasingly tight regulatory environment.

The meeting addressed a wide range of key issues in relation to developments in international accounting standards, including the International Accounting Standards Board's (IASB) proposals on corporate investments, provisions, hybrid financial instruments and business combinations.

It also reviewed initiatives to standardise financial statements, better integrate climate risks by addressing Dynamic Risk Management (DRM) developments and make headway on transparency about sustainability. The overarching purpose is to tailor accounting frameworks to the new financial, regulatory and environmental challenges facing the European banking sector.

The Sustainable Finance Committee held its 8th ordinary meeting with an agenda covering recent developments in the EU's green taxonomy, the review of the SFDR Regulation and the new guidelines on ESG labelling of financial products. Other new topics such as ESG defence financing, green mortgages and climate risk management in the supervisory framework of the ECB and the EBA were also discussed. These sessions enhance the ESBG's role as a leading forum for practical integration of sustainable finance in European retail banking.

CECA is a member of the ESBG and the WSBI (World Savings and Retail Banking Institute) representing 6,400 savings banks and retail banks serving over 1.7 billion customers in 78 countries.