meta_id 3259357

On June 22, 2026, the European Banking Authority (EBA) published its final draft Implementing Technical Standards (ITS) amending the Pillar 3 disclosure framework on environmental, social and governance (ESG) risks, equity exposures, and aggregate exposures to shadow banking entities. The ITS finalise the implementation of disclosure requirements introduced by the Capital Requirements Regulation (CRR 3) and form part of the EBA's broader simplification agenda. The amended framework introduces a "core plus supplement" approach calibrated to institutions' size and complexity. Large institutions will disclose 37 percent fewer datapoints than currently required, with taxonomy-related disclosures eliminated. Medium institutions will disclose 17 percent fewer datapoints, while Small and Non-Complex Institutions (SNCIs) will disclose 84 percent fewer datapoints than large institutions. The EBA will centrally pre-fill and disclose ESG information in the Pillar 3 Data Hub on behalf of SNCIs based on supervisory reporting. The ITS extend ESG disclosure requirements to all institutions in a proportionate manner for the first time. The framework aligns with the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD), enabling institutions to cross-refer to information disclosed under Pillar 3 in their ESRS public reporting, thereby reducing duplication. The ITS incorporate recommendations from the Joint Bank Reporting Committee on semantic integration, ensuring integrated reporting. The EBA will submit the final draft ITS to the European Commission for adoption and will develop a Data Point Model and XBRL taxonomy for submission to the Pillar 3 Data Hub. An updated mapping tool linking Pillar 3 disclosures with supervisory reporting will be published in 2026. The ITS are expected to apply with a reference date of December 31, 2026, and December 31, 2027, for SNCIs, subject to further adjustments following the European Commission's finalisation of its work.