This paper outlines the new disclosure requirements under the European Banking Authority (EBA) draft Implementing Technical Standards (ITS) for Pillar III disclosure and reporting of Environmental, Social and Governance (ESG) Risks under Article 449a of the Capital Requirements Regulation (CRR) and the key challenges and considerations for large reporting institutions.

Disclosure of ESG risk is critical to aid market discipline. The draft technical standards provide a framework for ESG related quantitative and qualitative disclosures, ensuring stakeholders are more appropriately informed about ESG exposures and strategies to support decision making.

The EBA has developed the consultation paper in parallel with advice from the European (EU) Commission on ESG disclosures under the EU taxonomy. 

To support in your understanding and implementation of the latest Pillar III disclosure requirements, please contact Capco’s Finance practice.

Christine De Marco, Senior Consultant
christine.demarco@capco.com

Charles Sincock, Managing Principal
charles.sincock@capco.com

Steve Watts, Partner
stephen.watts@capco.com