Article summary
The European Banking Authority (EBA) has published its final draft implementing technical standards (ITS) on Pillar 3 disclosures on environmental, social and governance (ESG) risks under the Capital Requirements Regulation (EU) 575/2013 (EU CRR). The final draft ITS include comparable disclosures to show how climate change may exacerbate other risks within institutions’ balance sheets, how institutions are mitigating those risks, and their ratios (including the green asset ratio) on exposures financing taxonomy-aligned activities, such as those consistent with the Paris agreement goals.
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