Außenansicht des D3 Gebäudes

Pillar 3

Pillar 3 of the Basel framework, as published by the Basel Committee on Banking Supervision, seeks to promote market discipline through regulatory disclosure requirements. 

Link: EBA, Pillar 3

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Pillar 3

Content of this page:

Please cite this register in conjunction with the following article:
Hummel, K., Jobst, D., 2023. An Overview of Corporate Sustainability Reporting Regulations in the European Union.


Adoption of the Capital Requirements Regulation (CRR) II1 (Regulation (EU) 2019/876)May 2019
Proposal of the Commission extending the scope and including small and noncomplex institutions in the future (COM(2021)664 final)October 2021
Final draft implementing technical standards (ITS) published by the EBAJanuary 2022
Application– The disclosure requirement of CRR II regarding ESG risks started in June 2022 requiring a first annual disclosure for the financial year 2022

– Phase-in period until the end of June 2024 for disclosures on institutions’ scope 3 emissions

– Phase-in periods until the end of 2023 and the end of June 2024 regarding the disclosure of information for the GAR and for the BTAR

1 This regulation amends Part Eight of the original CRR (Regulation (EU) No 575/2013) concerning the disclosures made by institutions and takes into account the reform measures of the Basel Committee of Banking Supervision (BCBS) with regard to its Pillar 3 disclosure standards.


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

The Commission proposed extending the scope and including small and noncomplex institutions in the future.

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

Disclosure requirements

From 28 June 2022, large institutions within the scope shall disclose information on ESG risks, including physical risks and transition risks.

The information shall be disclosed on an annual basis for the first year and biannually thereafter.

Reporting format

In January 2022, the EBA (European Banking Authority) published its final draft implementing technical standards (ITS) that specify uniform disclosure formats and instructions.

These ITS contain templates and tables along with detailed disclosure instructions regarding 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 further developed 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.


Updates to this page:

20 March 2023Updated the sections "Disclosure requirements" and "Reporting format".
15 September 2022Update to the current status of Pillar 3.