ESMA Environmental Statement
ENVIRONMENTAL STATEMENT N 1Reporting year: 202112 07 2022 ESMA62-335-666 EN
Table of Contents1EXECUTIVE DIRECTOR’S FOREWORD . 32INTRODUCTION . 53ESMA . 643.1ESMA’s mission . 63.2Teams and location . 63.3Scope of ESMA’s EMS . 7DESCRIPTION OF THE EMS . 84.1About EMAS at ESMA. 84.2Context and purpose of ESMA’s EMS . 84.3Governance of the EMS .115ENVIRONMENTAL POLICY.126ENVIRONMENTAL ASPECTS AND IMPACTS .147ENVIRONMENTAL OBJECTIVES.1687.12018-2021 environmental objectives .167.22022-2024 environmental objectives .17ENVIRONMENTAL PERFORMANCE AND ACTIONS .198.1Foreword .198.2Energy.198.2.1Performance .198.2.2Actions undertaken .228.2.3Next steps .228.3Paper consumption, IT equipment and systems .228.3.1Performance .228.3.2Actions undertaken .238.3.3Next steps .248.4Water consumption .258.4.1Performance .258.4.2Actions undertaken .268.4.3Next steps .268.5Waste .261
8.5.1Performance .268.5.2Actions undertaken .308.5.3Next steps .308.68.6.1Performance .308.6.2Actions undertaken .318.6.3Next steps .328.7Air emissions, including GHG .328.7.1Performance .328.7.2Actions undertaken .348.7.3Next steps .358.8Procurement.358.8.1Performance .358.8.2Actions undertaken .368.8.3Next steps .368.9Core business .368.9.1Context.368.9.2Actions undertaken .378.9.3Next steps .398.109Travels .30Other environmental impacts .40LEGAL REQUIREMENTS .412
1 EXECUTIVE DIRECTOR’S FOREWORDI am pleased and proud to sign the first environmentalstatement of ESMA!Sustainability is an integral part of ESMA’s mandate sincethe 2019 review of our Founding Regulation. As soon asFebruary 2020, our Sustainable Finance Strategy waslaunched. At ESMA, we support the EU’s ambitious agendaand actively contribute to building a sustainable financeframework that can support the orderly transition to a moresustainable economy.As we would like to lead by example, it is a natural choice forESMA to ensure that the environmental impact of ouractivities and daily operations is kept as low as possible andthat we operate in a sustainable way.Therefore, ESMA has chosen to go green and implement asound Environmental Management System based on the principles of the Eco-Managementand Audit Scheme (EMAS). We intend to further develop our green strategy to optimise theuse of internal and external resources, lower the negative direct and indirect environmentalimpacts of our activities and find ways to continuously improve. In the past five years,considerable steps have already been taken by the organisation in this direction and we arevery pleased to now be EMAS-registered.ESMA has been continuously growing since its establishment in 2011 and in November 2019moved to new more environment friendly premises. However, the past years were mainlymarked by the COVID-19 pandemic and are therefore not representative in terms of premisesoccupation, energy consumption or functioning of the organisation. These years have alsocreated an opportunity to experience new ways of working, including with less travelling. Goingforward we will need to draw lessons from these recent years as well as focus on way toproperly measure and continuously seek to improve our environmental performance.I am looking forward to pursuing this journey and supporting ESMA in becoming anincreasingly eco-friendly organisation building on the continued support of ESMA’s committedstaff.Natasha CazenaveExecutive DirectorEuropean Securities and Markets Authority3
Environmental verifier's declaration on verification andvalidation activitiesDr. Rainer Feldwith EMAS environmental verifier registration number DE-V-0186accredited or licensed for the scope NACE 66 and 84.1declares to have verified whether the whole organisation as indicated in the environmentalstatement of the organisation ESMAwith registration number to be completedmeet all requirements of Regulation (EC) No 1221/2009 of the European Parliament and ofthe Council of 25 November 2009 on the voluntary participation by organisations in aCommunity eco-management and audit scheme (EMAS).By signing this declaration, I declare that: the verification and validation have been carried out in full compliance with therequirements of Regulation (EC) No 1221/2009, the outcome of the verification and validation confirms that there is no evidence of noncompliance with applicable legal requirements relating to the environment, the data and information of the environmental statement/the updated environmentalstatement (1) of the organisation/site (1) reflect a reliable, credible, and correct imageof all the organisations/sites (1) activities, within the scope mentioned in theenvironmental statement.This document is not equivalent to EMAS registration. EMAS registration can only be grantedby a Competent Body under Regulation (EC) No 1221/2009. This document shall not be usedas a stand-alone piece of public communication.4
2 INTRODUCTIONThe European Securities and Markets Authority’s (ESMA) Environmental Statement(Statement) provides all stakeholders and other interested parties information concerningESMA’s environmental performance and activities from the adoption of its first environmentalpolicy in 2017, with a focus on the reporting year 1 January - 31 December 2021.This document has been drafted in accordance with the Eco-Management and Audit Scheme(EMAS) regulation1 in its last applicable version, considering the sectoral reference document(SRD) ‘Best Environmental Management Practice for the Public Administration Sector’2.This Statement and its annex (Environmental verifier's declaration on verification and validationactivities) will be published on ESMA’s website annually, as per our EnvironmentalManagement System (EMS).1REGULATION (EC) No 1221/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCILCOMMISSION DECISION (EU) 2019/61 of 19 December 2018 on the sectoral reference document on bestenvironmental management practices, sector environmental performance indicators and benchmarks of excellencefor the public administration sector under Regulation (EC) No 1221/2009 on the voluntary participation byorganisations in a Community eco-management and audit scheme (EMAS).25
3 ESMA3.1 ESMA’s missionESMA is an independent European Union (EU) Authority that contributes to safeguarding thestability of the EU's financial system by enhancing the protection of investors and promotingstable and orderly financial markets.ESMA achieves its objectives through 4 activities: assessing risks to investors, markets and financial stability; completing a single rulebook for EU financial markets; promoting supervisory convergence; and directly supervising credit rating agencies, trade repositories and securitisation.The transition towards a greener and more sustainable economy has become a priority for theEU and ESMA. Sustainable Finance refers to the process of taking environmental, social andgovernance (ESG) considerations into account when making investment decisions in thefinancial sector. At ESMA we integrate ESG factors across all our activities to ensure thatfinancial markets support and promote this transition. ESMA, with its overview of theinvestment chain, is in a unique position to pro-actively support sustainable finance initiativeswhile contributing to investor protection, orderly and stable financial markets. In this context,ESMA published its Sustainable Finance Roadmap in 2022 – this facilitates the coordinatedimplementation of ESMA’s sustainable finance mandate for the period from 2022 to 2024.3.2 Teams and locationSince November 2019, ESMA rents eight and a halffloors of a building in Paris XII (201-203, rue de Bercy75012 Paris) to house its staff3 and on-site consultants.Among the criteria to select a new building, theenvironmental performance was considered. The IBOXbuilding was awarded with multiple labels orcertifications after its refurbishment: LEED BD C Gold - the most widely used greenbuilding rating system;3338 staff on average in 2021, including temporary agents, contract agents, seconded national experts, interims, trainees, andon-site consultants6
HQE French certification - awarded to building construction and management; BBC Effinergie Rénovation - awarded to the building’s energy performance progresssince the refurbishment; and WELL certification Gold level, awarded to building owner for the effort in consideringhealth in the building.3.3 Scope of ESMA’s EMSTo decide on the scope of its management system ESMA considered several topics.Considering that: ESMA’s latest regulation 4 states that it shall act, in its field, “taking into accountsustainable business models and the integration of environmental, social andgovernance related factors” [art. 1(3)]; ESMA develops technical standards applicable throughout EU, it is its duty to “walk thetalk” and manage its own sustainability challenges, starting with its environmentalimpacts; Even though some indirect impacts may be difficult to measure or even assess, ESMAis eager to consider its environmental impacts in all its activities.The scope of the EMS covers both ESMA’s operations and activities in Paris and its mandatesregarding sustainability and ESG factors integration within its mission in enhancing theprotection of investors and promoting stable and orderly financial markets.4REGULATION (EU) No 1095/2010 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL7
4 DESCRIPTION OF THE EMS4.1 About EMAS at ESMAESMA initiated its journey towards EMAS in 2017, setting first targets to improve itsenvironmental performance by 2021.During the implementation phase, many significant contextual changes took place: The move, initiated in 2018, from a XIXth century building in Paris VIIth arrondissementto a newly re-constructed building with high environmental standards in Paris XIItharrondissement. The initial environmental performance assessment, conducted onESMA’s old premises, was helpful to clarify ESMA’s needs for the new building, andthe selection was influenced by the environmental performance of the new building; A greater focus on sustainable finance in the EU and the adoption of the EuropeanGreen Deal impacting ESMA’s core business activities; The growth of ESMA’s on-site Full-Time Equivalents (FTEs), from 282 in beginning2017 to 338 in end 2021 which mechanically impacts the organisation’s consumptions;and Finally, after ESMA’s move to its new building, the COVID-19 pandemic led ESMA tooperate off-site almost exclusively from March 2020 and most of 2021.With the support of a Green Team, consisting of committed staff members, ESMA developedand implemented an EMS. This first environmental statement reflects on the progress andchallenges ESMA has faced with EMAS.4.2 Context and purpose of ESMA’s EMSESMA works with a wide range of stakeholders: from its staff to local contractors; from NationalCompetent Authorities (NCAs) to European institutions. Those considered as significant, as ofend 2021, given the influence they may have on ESMA’s environmental performance and/ormutual high expectations, are the following:StakeholderTheir needs andexpectations regardingESMAESMA’s needs andexpectations regardingthemESMA staff and Green TeamImplement a sound andmeaningful EMS.Participate in improvement actionsand formulate suggestions.8
National Competent Authorities(notably via the CoordinationNetwork on Sustainability)Information on ESMA’s work andmandates in the area ofsustainable finance andopportunities to provide theirexpertise.Contribute to all ESMA’s workon sustainable finance matters,including in relation to theincorporation of ESG factors ininvestment advice, disclosurerequirements and chnical input in the form ofopinions, recommendations,proposals for regulatory technicalstandards to support the EU’sefforts to deliver on its sustainablefinance agenda and fosterconvergence across the EU.Development of a clear andconsistent legal framework andallocation of adequate time andresources to deliver on mandates.European Court of auditorsComply with all relevant regulation,adjust processes torecommendations.None specificBuilding owner and buildingmanagerRespect of the lease contract.Support in the access to dataregarding the building and lifemanagement of the building in thebest possible way, including as perannex 14 of the lease. Provideaccurate data related to energyand non-energy indicators.Building Management System(BMS) providerNone specific since no directcontract.Efficiency gains: provide support toautomate energy and fluidsreporting.Maintenance contractors(building and private)Respect the contract.Sound management of regular andad-hoc maintenance. Good wastemanagement and advice.Catering contractorFluid communication to limit foodwaste.Respect of contract (local food,reduced packaging ).Cleaning services contractorClear instructions and respect ofcontract.Procedures and training oncleaning and waste management.Waste removal and treatmentcontractorRespect the sorting instructions.Maximise recycling rate.Travel agencyRespect the contract.Provide accurate data forgreenhouse gas emissions relatedto travels for missions.Environmental regulatorysurveillance and legalcompliance contractorProvide necessary inputs.Annual environmental legalcompliance audit. MonthlyLegal document and reports, indue time.9
regulatory surveillance andsupport.Following a PESTEL (Political, Economic, Social, Technological, Legal and Environmentalfactors) analysis and a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis,which involved interviewing staff, the defined strategic risks and opportunities for ESMA’s EMSare as follows:Context categoryRisksOpportunitiesPoliticalNone strategic.EMAS registration is anopportunity for ESMA to be alignedwith the recommendations andregulations it develops for themarket participants.EconomicalThe building owner may be lesskeen on investing in environmentalimprovements where hisinvestments serve the tenants’interests only.Since the COVID-19 pandemic themajority of ESMA’s stakeholdersare equipped to exchange from adistance which implies lessimpacts and costs from travelling.SocialNone strategic.ESMA Social Committee developsan offer of green social activitiesfor the staff to promote localenvironmental initiatives (in andaround Paris) and volunteering.TechnologicalAn inadequate understanding ofEMAS requirements by landlord,building manager andsubcontractors would have animpact on ESMA’s EMS.Decoupling the accountingdepreciation time and the concreteuse of ESMA’s assets leads toextend their life and limit thepurchases of new items.EnvironmentalNone strategic.ESMA staff are aware thatmissions are one of the biggestconcerns for ESMA’senvironmental performance.LegalThe specific public procurementrules may deter local contractors tosubmit offers. Therefore, therecould be a reluctance to insertGreen Public Procurement (GPP)criteria on top not to increase thecomplexity.The legal compliance efforts leadto increase engagement withmanagement and staff by reducingthe risks of fines and of imageissues.10
4.3 Governance of the EMSTo operate its EMS, ESMA relies on the following structure:RoleKey responsibilitiesExecutive DirectorApproves the Policy and gives strategic orientation to the management system.Steering CommitteeChaired by Head of Resources, the Steering committee follows-up on the EMSeffectiveness including a quarterly review of the action plan - and provides supportto the Executive Director to make decisions.EnvironmentalcoordinatorThe environmental coordinator ensures the day-to-day smooth running of the EMS,providing support to all teams in the implementation and maintenance of the EMS.Management TeamImplementing, promoting, and enforcing environmental best practices in their team.Green TeamAdvocating environmental performance in their teams and with all staff.StaffActively taking part in day-to-day environmental good practices.11
5 ENVIRONMENTAL POLICYIn 2017, ESMA’s first environmental policy details the organisation’s engagements andachievements:Engagements:To reduce the environmental impact of its work and to improve its environmental performance,the following engagements govern ESMA’s actions: Minimise the consumption of energy, water, paper and other resources; Encourage the prevention of waste and environmental pollution by maximising therecycling and reuse of items and by optimising their disposal; Take necessary measures to reduce CO2 emissions and minimise the impact ofmobility and travel; and Comply with relevant environmental legislation, administrative regulations, and otherrequirements.Means of achievement:These engagements will be achieved by the following means: Promoting environmental awareness within ESMA and communicate and implementthis policy at all levels of the Authority; Providing suitable resources to fulfil ESMA’s policy; Promoting local environment protection initiatives and encourage active involvement inthese; Involving contractors and suppliers (when relevant) and incorporate environmentalcriteria into public procurement procedures and any rules regarding the organisation ofevents; and Promoting transparent communication with internal and external stakeholders.To improve its environmental performance, ESMA continually assesses the environmentalimpact of its actions. It sets objectives and targets and reviews them on a regular basis.This policy has been revised and a new environmental policy has been adopted in Q2 2022 totake into consideration the recent changes in ESMA’s context.12
The scope has been aligned with the EMS’ one (see section 3.3 above) and a new engagementhas been added: “Include environmental factors into our work, as a transversal topic, asexpected by our regulation”.This policy is relevant for staff and stakeholders that may influence ESMA’s EMS.13
6 ENVIRONMENTAL ASPECTS AND IMPACTSTo evaluate the significance of different environmental aspects, ESMA uses sets of variouscriteria depending on whether the aspect is direct or not; normal or malfunctioning (abnormal,emergency).For each aspect, ESMA identifies: the nature of negative impacts, and whether the aspect has or may have beneficialimpacts; the frequency/probability of the environmental aspect or the source of influence; the level of control or degree of ESMA’s influence on the environmental aspect; and the opinion of staff; from the survey launched by ESMA.This evaluation was updated by end 2021.The staff opinion survey will be updated in 2022.This evaluation provides the organisation with a ranking of aspects (1st rank to the mostsignificant aspects – there may be several). Taking into consideration ESMA’s resources, itwas decided that the top 11 would be significant with a priority for action in the years to come,as follows:ActivityEnvironmental aspectRankProcuring for ESMA's needsIntegration of environmental exclusions, selection or awardingcriteria.1On-site workCooling of premises: energy consumption.2On-site workHeating of premises: energy consumption.3MissionsTraveling for business: air and CO2 emissions from teams’missions through transport, water, waste, etc.3Events & meetingsTransportation of visitors: air and CO2 emissions for visitorstravelling to Paris.3Events & meetingsAir and CO2 emissions; energy and water, waste generation,etc for visitors’ stay in Paris (hotels).3Events & meetingsOrdering meals to Baxter Storey for catering.3Operation and maintenance:building and its equipmentWaste generated by maintenance: Waste form Electrical andElectronic Equipment (WEEE), dangerous waste, packagingwaste.314
Operation and maintenance:building and its equipmentWEEE generated by failing IT equipment (video, phones, PC,screens ).3Support to core businessProvide staff and some externals with IT equipment.3Core businessSustainability and ESG factors integration.315
7 ENVIRONMENTAL OBJECTIVES7.1 2018-2021 environmental objectivesESMA’s environmental objectives were set for 2021 (baseline 2018):Policy areaAspectObjectiveMinimise the consumption ofenergy, water, paper, and otherresourcesOffice work – Paper useReduce paper consumption by15%, per FTE/day.Minimise the consumption ofenergy, water, paper, and otherresourcesOffice work – Water consumptionReduce water consumption by10%, global and per FTE.Minimise the consumption ofenergy, water, paper, and otherresourcesOffice work – ElectricityconsumptionReduce electricity consumption by10%, per m2 and FTE.Encourage the prevention of wasteand environmental pollution bymaximising the recycling andreuse of items and by optimisingtheir disposalWasteReduce total waste production,global and per FTE.Increase by 15% the share ofrecycled waste and reduce nonsorted waste production, per FTE.Reduce paper waste production,per FTE.Reduce plastic and cans wasteproduction, global and per FTE.Take necessary measures toreduce CO2 emissions andminimise the impact of mobility andtravelTravelling for missionsMissions carbon footprint reducedby 10%.Comply with relevantenvironmental legislation,administrative regulations, andother requirementsAll activities100% compliance.The ESMA’s energy consumption analysis is performed per both square meter and FTE inorder to: take into consideration the context changes (i.e. the move to a new building wheremore office space was rented and the continuous growing of its staff headcount); and compare its performance years on years.16
The following chapter presents ESMA’s environmental performance. It is compared to anobjective when there is one. The value is either compared to ESMA’s own objective or to theavailable benchmark of excellence, from the sectoral guidance document Best EnvironmentalManagement Practice for the Public Administration Sector5 – SRD, when it exists.As it will be detailed in the next section, not all are relevant to analyse given the contextchanges.7.2 2022-2024 environmental objectivesNew objectives have been approved during the Management review in April 2022, in order toadjust for the multiple context changes. They cover the next period 2022-2024.The objectives are set for 2024 unless another target year is reported.Policy areaAspectObjectiveMinimise the consumption ofenergy, water, paper, and otherresourcesOffice work – energy and nonenergy consumption2022: Build processes with thebuilding manager to have a clearvision on all energy consumptions,in Q1 of the year after.Minimise the consumption ofenergy, water, paper, and otherresourcesOffice work – Paper useMaintain paper use below thebenchmark of excellence of15p/day/FTE.Minimise the consumption ofenergy, water, paper, and otherresourcesOffice work – Paper use2022: 100% of all reprints with thenew visual identity of ESMA isdone on eco-labelled paper.Minimise the consumption ofenergy, water, paper, and otherresourcesOffice work – Water consumptionReduce water consumption below5m3/FTE.Minimise the consumption ofenergy, water, paper, and otherresourcesProcurementMaintain a growing share of Greenprocurement.Encourage the prevention of wasteand environmental pollution bymaximising the recycling andreuse of items and by optimisingtheir disposalWaste2022: Maintain waste productionbelow the benchmark ofexcellence of 200kg/FTE.Recycle at least 65% of waste.COMMISSION DECISION (EU) 2019/61 of 19 December 2018 on the sectoral reference document on bestenvironmental management practices, sector environmental performance indicators and benchmarks ofexcellence for the public administration sector under Regulation (EC) No 1221/2009 on the voluntaryparticipation by organisations in a community eco-management and audit scheme (EMAS).517
Take necessary measures toreduce CO2 emissions andminimise the impact of mobility andtravelAll activitiesTake necessary measures toreduce CO2 emissions andminimise the impact of mobility andtravelTravelling for missionsInclude environmental factors intoour work, as a transversal topic, asexpected by our regulationSustainability and ESG factorsintegration2023: Extend scope to coveremissions from visitors in 2023.Reduce GHG emissions by21%/FTE, compared to 2019.Reduce GHG emissions due totravel by 35%/FTE compared to2019.Maintain a carbon intensity of ourtrips under 115g/km.All staff had the opportunity toparticipate in at least oneawareness-raising session relatingsustainability.All staff whose mission requires ithas received training on theregulatory framework forsustainable finance ESG factors.Comply with relevantenvironmental legislation,administrative regulations, andother requirementsAll activities100% compliance.18
8 ENVIRONMENTAL PERFORMANCE AND ACTIONS8.1 ForewordESMA moved into a newly refurbished building in November 2019.Since then, ESMA has had difficulties getting reliable and reproductible data regardingconsumptions from the building management and owner.However, ESMA managed to report on its environmental performance until end of 2021, basedon the best available data.ESMA’s primary objective regarding the building manager and building owner for 2022 will beto establish a clear and reliable process to be able to collect consumptions and monitorenvironmental performance.As explained in section 7.1, the energy consumption analysis is performed per both squaremeter and FTE.8.2 Energy8.2.1 Performanc
ESMA published its Sustainable Finance Roadmap in 2022 - this facilitates the coordinated implementation of ESMA's sustainable finance mandate for the period from 2022 to 2024. 3.2 Teams and location Since November 2019, ESMA rents eight and a half floors of a building in Paris XII (201-203, rue de Bercy 75012 Paris) to house its staff
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