The European Banking Authority (EBA) has issued a no-action letter concerning the application of ESG Pillar 3 disclosure requirements under the EBA’s Implementing Technical Standards (ITS). The move is aimed at addressing ongoing legal and operational uncertainties linked to the evolving ESG disclosure framework, particularly in the context of the European Commission’s proposed Omnibus legislative amendments on sustainability reporting.
The no-action letter formalises guidance previously outlined in the EBA’s May 2025 Consultation Paper on amending the Pillar 3 disclosure ITS. It advises competent authorities not to prioritise enforcement of certain disclosure obligations until the amended ITS come into effect. Specifically, the EBA recommends that supervisors:
- Do not prioritise enforcement of disclosures in ESG templates EU 6 to EU 10, and specific columns in Templates 1 and 4 of the Commission’s Implementing Regulation (EU) 2024/3172, for large institutions with listed securities;
- Do not prioritise enforcement of data collection for the same templates and columns under EBA Decision EBA/DC/498 of 6 July 2023;
- Do not prioritise enforcement of ESG disclosures under the Implementing Regulation (EU) 2024/3172 for other institutions newly brought within the scope of Article 449a of the Capital Requirements Regulation (CRR).
The EBA stated that it remains committed to developing a coherent and streamlined ESG disclosure regime and will continue to work in close coordination with EU institutions and stakeholders to facilitate the smooth implementation of new requirements.
In parallel, the authority has released an updated version of its ESG risk dashboard. The latest data suggest that the ESG risk landscape across EU and EEA banks remains stable, reflecting the long-term nature of climate-related financial risks and the gradual evolution of banking portfolios. The EBA noted that future editions of the dashboard will be adjusted in line with the guidance set out in the no-action letter.
Legal basis and regulatory context
The no-action letter has been issued under Article 9c of Regulation (EU) No 1093/2010—the EBA’s founding regulation—which permits the EBA to provide temporary relief where the application of a legal act may lead to significant issues, such as conflicts with other legislation or threats to market integrity, investor protection, or financial stability.
The ESG disclosure obligations stem from Article 449a of the CRR, as introduced by Regulation (EU) 2019/876 (CRR2), which initially required large institutions with listed securities to disclose their ESG risk exposures. These were operationalised through the Commission’s Implementing Regulation (EU) 2024/3172. Regulation (EU) 2024/1624 (CRR3) further expanded these requirements to cover all institutions, effective from 1 January 2025.
The EBA’s no-action stance is expected to provide clarity and regulatory breathing room as the EU finalises revisions to its ESG reporting framework.
