EBA Seeks Input on ESG Disclosure Practices of Banks
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks. The survey aims to support the policy work of EBA on Pillar 3 disclosures and its wider efforts to develop a robust policy framework in the area of sustainable finance. The survey is addressed to institutions that will be required to disclose prudential information on ESG risks as per Article 449a of Capital Requirements Regulation (CRR). The inputs can be provided until October 16, 2020.
The survey consists of three parts:
- General questions on the current status of ESG disclosure. This part includes general questions on ESG issues. For the environmental aspects, the questions cover several initiatives such as the EBA action plan on sustainable finance, EU Taxonomy, and the non-binding guidelines of EC on reporting of climate-related information.
- Questions on the interaction between Pillar 3 disclosures and policy initiatives. The focus of these questions is the interaction of institutions’ current practices with other policy initiatives such as the non-financial reporting directive (NFRD) and the non-binding guidelines of EC on non-financial information, including the supplement on climate-related reporting.
- Forward-looking questions on the implementation of upcoming disclosure requirements under CRR. These questions focus exclusively on climate change, including transition and physical risks, and cover aspects on exposure classification, metrics, and data availability.
The feedback to the survey will be used to inform and support the development of the implementing technical standards on Pillar 3 disclosures on ESG risks. The disclosure of information on ESG risks is one of the key components in the policy framework for sustainable finance. The survey will help EBA to understand the type of actions institutions are implementing following the policy messages and expectations on disclosures included in the EBA action plan on sustainable finance (published in December 2019), including the disclosure of a green assets ratio. In parallel, ESAs are preparing to launch a joint survey seeking public feedback on presentational aspects of financial products that promote environmental and/or social characteristics or have a sustainable objective.
Related Links
Keywords: Europe, EU, Banking, ESG, Climate Change Risk, Disclosures, Pillar 3, CRR, Sustainable Finance, Reporting, NFRD, Basel, EBA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
EBA Publishes Annual Report on Functioning of Resolution CollegesNext Article
BNM to Transfer Small Debt Resolution Scheme to AKPKRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
