+109. Large institutions should ensure that their plans include at least the following aspects: a. …

109. Large institutions should ensure that their plans include at least the following aspects: a. …

Large institutions should ensure that their plans include at least the following aspects:

a. Strategic objectives and roadmap of the plans:

i.	high-level medium appetite;	overarching strategic objective to address ESG risks in the short, and long term, in line with overall business strategy and risk
ii.	comprehensive ensure consistency	set of long-term goals with intermediate milestones to resilience of the business model towards ESG risks, including of business structure and revenues with such milestones;
iii.	key understanding central from alignment	assumptions, inputs and background information relevant to the of institutions’ objectives and targets , including selection of or reference scenario(s) and institutions’ conclusions stemming the outcomes of materiality assessments of ESG risks, portfolio assessments and other scenario analyses;

b. Targets and metrics:

i.	quantitative from sustainability and used	targets set to address ESG risks, including those stemming the process of adjustment towards the legal and regulatory objectives of the jurisdictions where the institution operates broader transition trends towards a sustainable economy, and metrics to monitor ESG risks and the progress in achieving the targets;
ii.	portfolios, economic monitoring sufficiently and	sectors, asset classes, business lines and, where applicable, activities (i.e. individual technologies) covered by targets and metrics, ensuring that the scope of targets and metrics reflects the nature, size and complexity of institution’s activity its materiality assessment of ESG risks;
iii.	time	horizons over which targets and metrics apply;

c. Governance:

i.	governance the the	structure for the plans including roles and responsibilities for formulation, validation, implementation, monitoring and updating of plan, including escalation steps in case of deviation from targets;
ii.	capacity skills risk-related	and resource-related actions to ensure appropriate knowledge, and expertise for effective implementation of the plan, including ESG trainings and internal culture; 43
iii.	remuneration ESG	policies and practices to promote sound management of risks in line with the institution’s objectives and risk appetite;
iv.	data	and systems used for the transition planning process;

d. Implementation strategy:

i.	overview core including making complemented contribution	of short-, medium-, and long-term actions taken or planned in banking activities and processes to achieve the plan’s targets, how the institution embeds the plan’s objectives into its decision-process and its regular risk management framework, by information on the observed effectiveness or estimated of each action to the relevant target(s);
ii.	adaptations lending sectors	to policies and procedures on financial risk categories and to and investment policies and conditions on key economic activities, and locations;
iii.	changes support	introduced to the mix and pricing of services and products to the implementation of the plan;
iv.	investments business information services, accompanied	and strategic portfolio allocation supporting the institution’s strategy and risk appetite in relation to ESG risks, including on sustainability-related and transition-related products and and how any changes in strategic financing choices are by commensurate risk management procedures;

e. Engagement strategy:

i.		policies for engaging with counterparties, including information on the frequency, scope and objectives of engagement, types of potential actions and escalation processes or criteria;
ii.		processes, methodologies and metrics used for collecting and assessing information related to counterparties’ exposure to ESG risks and alignment towards the institution’s objectives and risk appetite ;
iii.		outcomes of engagement practices, including an overview of counterparties’ adaptability and resilience to the transition towards a more sustainable economy.

1. Overview

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Summary	Regulation

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements
Source	Requirement

3. Related Standards

Standards
Source	Requirement

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