The EBA is consulting on disclosures for ESG risks under the Pillar 3 framework

The European Banking Authority published a consultation paper on draft implementing technical standards on Pillar 3 disclosures on Environmental, Social and Governance (ESG) risks. The draft technical standards provide a framework for ESG disclosures to ensure stakeholders are informed about ESG exposures and strategies and can make informed decisions and exercise market discipline.

Read more in this alert on what will banks be required to disclose under the new framework, as well as on the timeline of the respective disclosures. The publication also includes details of the proposed Green Asset Ratio, which integrates the EU Taxonomy into bank disclosure requirements for the first time.