The European Banking Authority (EBA) has published final draft standards amending Pillar 3 disclosures on ESG risks, equity, and shadow banking exposures, aligned with CRR 3 and EU sustainability initiatives.
The European Banking Authority (EBA) has published its final draft Implementing Technical Standards (ITS) amending the Pillar 3 disclosure framework regarding environmental, social, and governance (ESG) risks, and introducing disclosure requirements on equity and shadow banking exposures.
The standards finalize the implementation of disclosure requirements introduced by the Capital Requirements Regulation (CRR 3). They aim to streamline existing requirements, improve usability, and ensure consistency, aligning with the European Sustainability Reporting Standards (ESRS) and ongoing consultation on ESG reporting requirements.
The final draft ITS are closely linked to the ESG supervisory reporting framework, and stakeholders are encouraged to consider both documents together for a comprehensive understanding.
The ITS are aligned with the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD). This interoperability allows institutions to use disclosures across frameworks, reducing duplication. The EBA plans to cooperate with the European Commission to further align these frameworks.
The amendments extend ESG disclosure requirements to all institutions proportionally, with a ‘core plus’ approach for large institutions. Large institutions will disclose 37% fewer data points, medium institutions 17%, and Small and Non-Complex Institutions (SNCI) 84% fewer data points compared to current requirements. The EBA will also pre-fill and disclose ESG data for SNCIs via the Pillar 3 Data Hub based on supervisory reporting.
The EBA will submit the final draft ITS to the European Commission for adoption, develop a Data Point Model (DPM), and publish an updated mapping tool in 2026. The standards are expected to apply with a reference date of 31 December 2026 for large institutions and 31 December 2027 for SNCIs, subject to further adjustments.
This publication supports the EBA’s broader initiative to simplify and strengthen the EU prudential and supervisory framework, as part of its ‘Simplifying to strengthen’ campaign and the Roadmap on strengthening the prudential framework, published in December 2023.
