On 22 June 2026, the European Banking Authority (“EBA”) published its final draft Implementing Technical Standards (“ITS“), amending the Pillar 3 disclosure framework for ESG risks and introducing disclosure requirements for equity and shadow banking exposures (“Amendment “). The Amendment finalises the implementation of disclosure requirements introduced by the third amendment to the Capital Requirements Regulation (CRR3) and forms part of the EU’s broader simplification efforts. The Amendment is available at this link.

The updated ITS aim to streamline disclosure requirements, improve usability and ensure greater consistency across the regulatory framework. They are aligned with the European Sustainability Reporting Standards (ESRS) and with the EBA’s draft ITS on ESG reporting requirements, which are currently under consultation. The EBA also highlights the link between ESG supervisory reporting and the Pillar 3 disclosure framework. Stakeholders are encouraged to read the Pillar 3 disclosures together with the related consultation paper to understand the overall ESG framework and provide informed feedback.

A key aspect of the amendment is proportionality and simplification. For large institutions, the requirements are simplified through a “core plus supplement” approach, calibrated to the size and complexity of institutions. According to the EBA, large institutions would disclose 37% fewer datapoints, while small and non-complex institutions would disclose 84% fewer datapoints than large institutions.