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Pillar 3 is evolving

CRR 2 introduces many changes including a focus on ESG

The revised Pillar 3 framework defines which disclosures are applicable to different institutions, depending on their size, complexity and on whether they are listed or non-listed institutions.

Transparency and market discipline continue to top the agenda for Irish and European regulatory authorities. The second Capital Requirements Regulation (CRR 2) and recent European Central Bank (ECB) and European Banking Authority (EBA) publications, continue to strengthen the Pillar 3 regulatory framework across Europe and provide challenges to firms in this context. Institutions will be familiar with the majority of data required for the initial CRR 2 Pillar 3 disclosure requirements from June 2021 however future requirements, including the ECB Guide on climate-related and environmental risks1 and EBA draft implementing technical standards (ITS) on Environmental, Social and Governance (ESG) risk disclosures under the Pillar 3 framework2, present significant challenges for firms, in particular finance and risk functions and governance fora up to and including the Board.

Read more about these revisions to the Pillar 3 framework, including the key features of the new disclosure requirements as well as the framework's importance to firms here.

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