EBA advises regulators not to prioritize enforcement of certain ESG disclosure templates until new rules take effect.
Updated ESG risk dashboard shows stable risk landscape across EU/EEA banks.
Adjustments to the dashboard will align with the no-action letter in future editions.
The European Banking Authority (EBA) has issued a no-action letter addressing the application of ESG Pillar 3 disclosure requirements under its Implementing Technical Standards (ITS). The move aims to ease legal and operational uncertainties as the European Commission’s Omnibus legislative package on sustainability reporting progresses.
The letter formalises guidance outlined in the EBA’s May 2025 Consultation Paper, advising competent authorities to temporarily avoid prioritising enforcement of certain disclosure elements. These include templates EU 6 to EU 10 and specific columns in Templates 1 and 4 under Commission Implementing Regulation (EU) 2024/3172, as well as the equivalent requirements under EBA Decision EBA/DC/498. The recommendation applies both to large institutions with listed securities and to other institutions newly covered by Article 449a of the Capital Requirements Regulation (CRR).
RELATED ARTICLE: EBA Opens Consultation on ESG Risk Management Guidelines for Financial Institutions
The EBA stated it remains committed to “delivering a coherent and streamlined ESG disclosure framework” and will continue collaborating with EU institutions and stakeholders to ensure a smooth rollout of new rules.
Alongside the letter, the EBA released its updated ESG risk dashboard using December 2024 data. The latest findings indicate a stable ESG risk environment for EU/EEA banks, reflecting the long-term nature of climate-related risks and the gradual shift in banking portfolios.
Future editions of the dashboard will adjust content in line with the no-action letter’s recommendations on deprioritizing enforcement of specific disclosures.
Follow ESG News on LinkedIn
