The European Banking Authority (EBA) launched a public consultation on draft amendments to the European Commission’s Implementing Regulation on Pillar 3 disclosures under the Capital Requirements Regulation III, updating disclosure requirements for ESG-related risks, equity exposures and aggregate exposure to shadow banking entities. The draft also incorporates the new EU statistical classification codes for economic activities (NACE) to support more consistent reporting. The package finalises implementation of the Pillar 3 disclosure mandates in the CRR3 banking package, including extending ESG risk disclosures to all institutions and introducing disclosures on shadow banking and equity exposures. In line with the European Commission’s initiative to simplify sustainability reporting, the EBA proposes a proportionate ESG framework tailored to institution type, size and complexity, with simplified disclosures for banks other than large ones, particularly small or non-listed institutions. For large listed banks already disclosing ESG information, the EBA proposes no new obligations and instead clarifies requirements, including materiality considerations that affect the frequency of some disclosures and permanent alignment of Green Asset Ratio templates with the Taxonomy Regulation. Transitional provisions are proposed, alongside supervisory flexibility until the new implementing technical standards apply, including a potential no-action letter advising competent authorities not to prioritise enforcement of certain Green Asset Ratio and taxonomy templates for large and listed institutions, or any ESG templates for other institutions. The EBA also provides an updated mapping tool between Pillar 3 and supervisory reporting and repeals its guidelines on disclosure of non-performing and forborne exposures in light of CRR3’s extended disclosure requirements. The consultation closes on 22 August 2025. A remote public hearing is scheduled for 26 June 2025 from 11:00 to 12:30 CEST, with registration closing at 16:00 CEST on 24 June 2025.
European Banking Authority 2025-05-22
European Banking Authority launches consultation on proportionate Pillar 3 disclosure changes for ESG risks, equity exposures and shadow banking exposures
The European Banking Authority (EBA) is consulting on draft amendments to the European Commission’s Implementing Regulation on Pillar 3 disclosures under the Capital Requirements Regulation III, focusing on ESG-related risks, equity exposures, and shadow banking entities. The proposal includes a proportionate ESG framework tailored to institution type, size, and complexity, with simplified disclosures for smaller banks, while clarifying requirements for large listed banks. Transitional provisions and supervisory flexibility are suggested, including a potential no-action letter.