GAR - Green Asset Ration

percentage of bank’s portfolio which is classified as sustainable
- other financial companies
- private households
- local authorities
- non-financial companies → NFRD
  - Turnover, CAPEX, OPEX
  - limited by NFRD catchment
    - only large companies are regarded
  - lot’s of small companies can be not aligned and still not show up in report
    - problem will be reduced if more companies are included in NFRD and CSRD
forces non-financial companies to report voluntarily on most important indicators
- affects future loan negotiations

BTAR - Book Taxonomy Alignment Ratio

problem: companies which are not large enough do not report currently based on NFRD or CSRD
solution: just add the small companies to the nominator and do some sort of Materiality Assesment on them
- i.e. ignore them in calculations, but do some calculations
only a temporary solution until more companies are reporting by themselves
banks need a lot of information of the smaller companies they invest in; issues in 2 points
- manpower - not enough people to do the assessments
- information - most smaller companies don’t even have the information to begin with
  - e.g. which tires are your cars using?