The European Banking Authority has published final draft implementing technical standards amending the Pillar 3 disclosure framework on environmental, social and governance risks and introducing new disclosures on equity exposures and aggregate exposures to shadow banking entities. The package completes the Capital Requirements Regulation 3 disclosure mandates and reshapes the ESG disclosure framework around simplification and proportionality, while extending ESG disclosure requirements to all institutions rather than only large listed firms. For ESG disclosures, the standards adopt a tiered approach based on size and complexity. Large institutions keep a fuller framework, but with streamlined templates and 37% fewer datapoints than under the current regime. Other institutions would disclose 17% fewer datapoints, while small and non-complex institutions would disclose a much narrower set of information, with 84% fewer datapoints than large institutions. Taxonomy-related disclosures are removed, large subsidiaries are exempted from qualitative ESG disclosures under the simplified framework, and the European Banking Authority plans to pre-fill and publish ESG information for small and non-complex institutions in the Pillar 3 Data Hub based on supervisory reporting. The standards are also aligned with the European Sustainability Reporting Standards and the European Banking Authority's draft ESG supervisory reporting standards, allowing institutions where appropriate to cross-refer between Pillar 3 and sustainability reporting to reduce duplication. Beyond ESG, the package adds a new disclosure template for aggregate shadow banking exposures, simplifies the revised equity exposure disclosures to the total amount required by Capital Requirements Regulation 3, updates certain credit quality disclosures to the new NACE Rev. 2.1 classification, and repeals the guidelines on non-performing and forborne exposures because those disclosures are now embedded in the Capital Requirements Regulation framework. The European Banking Authority will submit the final draft standards to the European Commission for adoption and will develop the related Data Point Model and XBRL taxonomy for submission to the Pillar 3 Data Hub. It also plans to publish an updated mapping tool during 2026. The standards are expected to apply with a reference date of 31 December 2026, and 31 December 2027 for small and non-complex institutions, subject to any further adjustment arising from the Commission's finalisation work.
European Banking Authority2026-06-22
European Banking Authority finalises simplified Pillar 3 ESG disclosures and adds equity and shadow banking exposures
The European Banking Authority has issued final draft standards revising Pillar 3 disclosures on ESG risks and adding new disclosure requirements for equity exposures and aggregate exposures to shadow banking entities under Capital Requirements Regulation 3. The package extends ESG disclosures to all institutions on a proportionate basis, cuts datapoints for large institutions by 37% and removes taxonomy-related disclosures. The standards are expected to apply from the 31 December 2026 reference date, with small and non-complex institutions starting from 31 December 2027.