Key Updates
The European Banking Authority (EBA) has finalized revised ESG disclosure requirements under its Pillar 3 framework, significantly reducing reporting burdens for banks while extending ESG reporting obligations to smaller institutions for the first time.
The updated framework reduces ESG risk-related disclosure data points for large institutions by approximately 37%, from 2,614 to 1,648 datapoints. Small and Non-Complex Institutions (SNCIs) will be required to report a streamlined set of approximately 269 datapoints—an 84% reduction compared to larger banks.
One of the most significant changes is the removal of Green Asset Ratio (GAR) and EU Taxonomy alignment disclosures from the framework. The EBA noted that many banking counterparties remain outside the scope of the EU Taxonomy, limiting the usefulness of these disclosures.
The changes form part of the EU’s broader Banking Package (CRR3) and follow regulatory adjustments introduced through the Omnibus I package, which sought to simplify sustainability reporting requirements while maintaining transparency around ESG risks.
Why It Matters
The revised framework represents a major shift toward proportional ESG reporting in the banking sector.
Large listed institutions will continue to disclose detailed information on climate-related risks, sector-level credit quality, financed emissions, and exposure maturity profiles. Smaller institutions, however, will be subject to a more focused reporting regime covering qualitative ESG information, key physical and transition risks, and exposure to fossil fuel-related activities.
For banks, the challenge is no longer simply collecting more ESG data. Instead, the focus is shifting toward ensuring that the required information is accurate, governed, traceable, and aligned across disclosures, supporting evidence, and reporting processes.
How EcoActive Helps
EcoActive helps financial institutions:
- Manage ESG and financial disclosures within a unified reporting environment.
- Connect data, narrative, disclosures, controls, and supporting evidence.
- Maintain traceability between source data and reported disclosures.
- Streamline review, approval, and governance workflows.
- Support audit-ready reporting through validations and controlled processes.
- Adapt reporting processes as regulatory requirements evolve.
Learn More
As sustainability reporting frameworks continue to evolve, organizations need reporting environments that support transparency, governance, and efficient disclosure management.
Discover how EcoActive helps organizations manage financial and sustainability disclosures through an AI-native reporting platform.
