This document presents the European Banking Authority's opinion on the ESG risk disclosure requirements, which will come into effect on January 1, 2025. It emphasizes that all institutions must now disclose this information, while considering the principle of proportionality. Additionally, it mentions a legislative proposal aimed at simplifying sustainability reporting obligations, particularly for small and…
This document is an opinion published by the European Banking Authority (EBA) on August 5, 2025. It concerns the application of provisions related to disclosures of environmental, social, and governance (ESG) risks under Regulation (EU) No 575/2013 (CRR) and its successive amendments, notably CRR2 and CRR3. The scope covers ESG disclosure requirements imposed on European credit institutions, focusing on uniform disclosure formats (ITS) and the impacts of recent European legislative proposals, particularly the Omnibus package published in February 2025. The document is addressed to competent authorities and financial institutions subject to CRR rules, for the implementation period starting in 2025 (pp. 1-4).
The EBA's opinion concerns the application of ESG risk disclosure requirements introduced by CRR3, which extend these obligations to all European financial institutions from January 1, 2025, with an annual frequency. These requirements are part of a strengthened regulatory framework aiming to improve transparency on ESG risks, linked to the implementing technical standards (ITS) adopted by the European Commission in November 2024. However, the publication in February 2025 of the Omnibus package, which aims to simplify and make sustainability reporting obligations more proportionate, creates uncertainty regarding the finalization of the amended ITS. In view of these uncertainties, the EBA recommends that, between June 30, 2025 and the entry into force of the amended ITS, competent authorities do not prioritize the strict application of certain ESG disclosure templates, notably those related to the Green Asset Ratio and other indicators linked to the European taxonomy, in order to avoid disproportionate burdens, especially for small newly concerned institutions. This position aims to ensure regulatory consistency, legal certainty, and to facilitate a gradual and adapted implementation of the new ESG obligations (pp. 1-4).
The document was drafted in a context of strengthening ESG disclosure requirements in the European banking sector, following CRR developments (notably CRR3) which extend these obligations to all institutions. Concurrently, the European Commission proposed in February 2025 the Omnibus package, aiming to simplify and harmonize sustainability reporting rules, notably for SMEs. These legislative developments directly impact the formats and contents of ESG disclosures defined in the EBA ITS. The opinion's objective is to clarify the application of ESG provisions during this period of regulatory uncertainty, to avoid conflicts between different legal obligations, and to recommend temporary measures to reduce the operational burden on institutions, particularly smaller ones, until the amended ITS are finalized (pp. 1-3).
Regulatory framework for ESG disclosures:
- The CRR, via Article 449a, imposes ESG disclosures on large institutions since CRR2, extended to all institutions by CRR3 as of January 1, 2025.
- The Commission adopted uniform ITS (EBA disclosure ITS) in November 2024 specifying ESG disclosure formats.
Impact of the Omnibus package:
- Published in February 2025, this package aims to simplify sustainability reporting obligations, notably through targeted amendments to the CSRD, CSDDD, and the Taxonomy Regulation.
- These amendments affect the structure and content of ESG disclosures, creating uncertainty about the final version of the EBA ITS.
Application challenges and temporary recommendations:
- Risk of conflicts between CRR3 requirements and other legislative frameworks, notably on the Green Asset Ratio and taxonomy-related indicators.
- Disproportionate burden for institutions newly subject to ESG obligations, especially smaller ones.
- EBA recommendation that, from June 30, 2025 until the entry into force of the amended ITS, authorities do not prioritize the application of certain ESG disclosure templates (EU 6 to EU 10, specific columns of templates 1 and 4).
Competences and procedure:
- The EBA relies on Article 9c of Regulation 1093/2010 to issue this opinion as a “no action letter” to ensure consistent application and avoid legal doubts.
- The opinion is addressed to the European Commission and national competent authorities (pp. 1-4).
Established facts:
- CRR3 extends ESG disclosure obligations to all institutions from 2025.
- The Commission adopted uniform ITS in November 2024, but their update is pending due to the Omnibus package.
- The Omnibus package introduces significant amendments affecting ESG requirements.
Assumptions and uncertainties:
- The final impact of the Omnibus package on EBA ITS remains uncertain until the text is finalized by co-legislators.
- Immediate application of current ITS could lead to disproportionate burdens and regulatory conflicts.
Author's interpretations:
- A transitional period without prioritized application of certain disclosure templates is necessary to guarantee legal certainty and regulatory consistency.
- This approach facilitates a gradual and proportionate implementation of ESG requirements.
Uncertainties:
- Exact date of finalization and entry into force of the amended ITS.
- Concrete impact of Omnibus package amendments on ESG disclosure obligations (pp. 1-4).
The EBA concludes that due to uncertainties related to the finalization of the Omnibus package and the update of the ITS, a pragmatic approach is necessary for the application of ESG requirements. It recommends that, from June 30, 2025 until the entry into force of the amended ITS, competent authorities do not prioritize the application of the following ESG disclosure templates: EU templates 6 to 10, column c of template 1, and column c of template 4, in accordance with Regulation (EU) 2024/3172 and decision EBA/DC/498. This measure aims to avoid disproportionate burdens for institutions, notably smaller ones, and to prevent regulatory conflicts linked to simultaneous legislative developments. The opinion will be published on the EBA website and is addressed to the European Commission as well as national competent authorities (pp. 3-4).
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