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
EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
BCBS and EBA Publish Results of Basel III Monitoring Exercise
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
PRA Updates Timeline for Final Basel III Rules, Issues Other Updates
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
US Treasury Sets Out Principles for Net-Zero Financing
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
EC Launches Survey on G7 Principles on Generative AI
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.