Legal & Regulatory News
European Banking Authority publishes binding standards on Pillar 3 disclosures on ESG risks
24 January 2022On 24th January 2022, the European Banking Authority (EBA) published its final draft implementing technical standards (ITS) on Pillar 3 disclosures of ESG risks, aiming to ensure that stakeholders are well-informed about institutions' ESG business strategy, and can make well-informed decisions.
The ITS put forward comparable disclosures and KPIs (such as the green asset ratio and a banking taxonomy alignment ratio) to show how climate change may exacerbate other risks within institutions' balance sheets. As well as this, the ITS also explore how institutions are embedding sustainability considerations in their risk management models and pathways to the UN Sustainable Development Goals.
Click here to access the final report.