The European Banking Authority (EBA) has published final draft Implementing Technical Standards (ITS) amending the Pillar 3 disclosure framework on environmental, social and governance (ESG) risks, and introducing new disclosure requirements on equity and shadow banking exposures. The package, released on 22 June 2026, finalises the implementation of disclosure requirements introduced by the Capital Requirements Regulation (CRR 3) and aligns with the EU's simplification agenda and the Omnibus package. For large institutions, the ITS reduce disclosure data points by 37% and stop taxonomy-related disclosures, while extending ESG disclosure requirements to all institutions in a proportionate manner for the first time. Medium institutions will see a 17% reduction, and small and non-complex institutions (SNCIs) will disclose 84% fewer data points than large institutions, with the EBA centrally pre-filling and disclosing ESG information for SNCIs via the Pillar 3 Data Hub.
The ITS are closely linked to the EBA's consultation paper on ESG supervisory reporting, and stakeholders are encouraged to consider both documents together. The EBA has aligned the ITS with the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD), enabling institutions to cross-reference Pillar 3 disclosures in their ESRS public reporting to reduce duplication. The EBA stands ready to cooperate with the European Commission to further strengthen alignment with ESRS.
The publication is part of the EBA's communication campaign "Simplifying to strengthen: building a more efficient EU prudential and supervisory framework," which follows the EBA's Report on the efficiency of the regulatory and supervisory framework published on 1 October 2025. The ITS deliver on Recommendations 4 (Integrated reporting) and 5 (Review and reduce existing reporting requirements) from that report, aiming to reduce costs and improve proportionality. The deliverable also forms part of the EBA Roadmap on strengthening the prudential framework, published in December 2023, and represents step 2 after the adoption of Commission Implementing Regulation (EU) 2024/3172.
The ITS introduce a "core plus supplement" approach calibrated to institutions' size and complexity, and incorporate recommendations from the Joint Bank Reporting Committee on semantic integration. The EBA will submit the final draft ITS to the European Commission for adoption, and will develop a Data Point Model and XBRL taxonomy for submission to the Pillar 3 Data Hub. An updated mapping tool linking Pillar 3 disclosures with supervisory reporting is expected in 2026. The ITS are expected to apply with a reference date of 31 December 2026, and 31 December 2027 for SNCIs, subject to any adjustments from the Commission's finalisation.
The new requirements include disclosures on equity exposures (Article 438(e) CRR3), aggregate exposures to shadow banking entities (Article 449b CRR3), and the extension of ESG risk disclosure requirements to all institutions (Article 449a CRR3). The final report also repeals the Guidelines on non-performing and forborne exposures, as these disclosures are now incorporated into the CRR framework.
Large EU banks face reduced reporting burden with fewer data points and elimination of taxonomy disclosures, but must adapt to the new "core plus supplement" approach. Medium and small banks gain clarity and proportionality, with SNCIs benefiting from EBA pre-filling. Regulators and supervisors gain more consistent and comparable data through integrated reporting. Investors and civil society may see less granular ESG data from large banks due to the reduction in data points, but broader coverage across all institutions improves overall transparency.