EU: EBA launches consultation on standards for Pillar 3 disclosures of ESG risks
The European Banking Authority ('EBA') announced, on 1 March 2021, that it had launched a public consultation on draft technical standards focusing on Pillar 3 disclosures of Environmental Social and Corporate Governance ('ESG') risks. In particular, the EBA noted that Pillar 3 concerns the development of a framework for consistent disclosures and transparency for market discipline, and that the Pillar 3 framework in the context of ESG relates to how investors and stakeholders compare the sustainability performance of institutions and of their financial activities. Further to the same, the consultation paper outlines tables, templates, and associated instructions for financial institutions to use when disclosing relevant qualitative information on ESG risks, and quantitative information on climate change related risks, including transition and physical risks as well as mitigating actions.
Stakeholders can submit any comments until 26 March 2021.