On 18 July 2023, the European Banking Authority (EBA) published a decision of 6 July 2023 concerning ad hoc collection by Member State competent authorities (NCAs) to the EBA of institutions’ ESG data. Under this decision ESG data will be collected from large, listed institutions based on their pillar 3 quantitative disclosures on ESG risks. The collection will provide NCAs with data to monitor ESG risks and support the EBA in fulfilling its ESG mandates, including to set up a risk monitoring framework and contribute to the European Commission’s Strategy for financing the transition to a sustainable economy.
Currently, institutions do not submit supervisory reporting data on ESG risks, quantitative ESG risk data is only available in their Pillar 3 reports disclosed in accordance with Articles 434 and 449a of the Capital Requirements Regulation (CRR) and Article 18a of the Implementing Regulation (EU) 2021/637.
The ad hoc collection of ESG data from NCAs to the EBA, in accordance with the decision, does not replace the monitoring of ESG risks by NCAs, including through the collection of relevant information from supervised institutions, that NCAs may already have in place.
The approach set out in the decision is only an interim solution for the EBA to collect the quantitative ESG risk data from NCAs, as institutions will be required to report information on their exposures to ESG risks as part of the supervisory reporting framework under the CRR 3.