Außenansicht des D3 Gebäudes

Pillar 3 disclosures on ESG risks

Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements, and Regulation (EU) No 648/2012.

Link: Regulation (EU) 2019/876

Pillar 3

Content of this page:

Please cite this register in conjunction with the following article:
Hummel, K., Jobst, D., 2024. An Overview of Corporate Sustainability Reporting Legislation in the European Union. Accounting in Europe. DOI: 10.1080/17449480.2024.2312145


In 2019 the EU adopted the CRR (Capital Requirements Regulation) II, which amends the original CRR (Regulation (EU) No 575/2013) and takes into account the reform measures of the Basel Committee of Banking Supervision (BCBS) regarding Pillar 3 disclosure requirements to promote market discipline. The CRR II also introduces Article 449a, which requires the disclosure of Environmental, Social and Governance (ESG) risks.

Adoption of the regulation:May 2019
Application:Disclosure requirement of CRR II regarding ESG risks started in June 2022 requiring a first annual disclosure for the financial year 2022. However, several disclosure requirements are phased in, including:
  • Disclosures on institutions’ financed GHG emissions (reference date: end of June 2024)
  • Disclosure of information for the GAR and for the BTAR (reference dates: end of December 2023 and December 2024, respectively).


Large institutions (i.e., credit institutions and certain investment firms) with issued securities publicly listed on a regulated EU market.1

1 Definitions according to Article 4 of Regulation (EU) 575/2013.

Disclosure requirements

Since end of June 2022, large institutions within the scope shall disclose information on ESG risks, including physical risks and transition risks.

Reporting format

To specify uniform disclosure formats and instructions, the European Commission adopted implementing technical standards (ITS) in November 2022 based on a draft developed by the EBA (European Banking Authority).

These ITS contain templates, tables, and detailed disclosure instructions for both quantitative and qualitative disclosure requirements.

  • The quantitative disclosures relate to climate change transition and physical risks and institutions’ mitigation actions, in particular the green asset ratio (GAR) and the Banking Book Taxonomy Alignment Ratio (BTAR).

  • The qualitative disclosures focus on on how governance arrangements, business strategy and processes, and risk management consider risks in each ESG dimension.

The ITS will be developed further to integrate the developments of the technical screening criteria for the environmental objectives other than climate change mitigation and adaptation according to the Taxonomy Regulation.