8 Aug 2022

In its repsonse to the EFRAG and ISSB consultations on sustainability disclosures, the EBA has agreed with the need to introduce international standards for sustainability reporting and emphasised the need for consistency.

  • Reporting

The European Banking Authority (EBA) has submitted its response to the International Sustainability Standards Board (ISSB) and EFRAG (European Financial Reporting Advisory Group) consultations on sustainability disclosure standards.

In it, the EBA agree there is a need to introduce international and European standards of sustainability reporting, and that a response is needed to the growing demand for comparable corporate sustainability data which is reliable and transparent. They also want to ensure that there is consistency between the reporting requirements for institutions that are under the EFRAG and Pillar 3 framework.  

The EBA has focused on the aspects more relevant for financial institutions’ Pillar 3 disclosures, and their counterparties data needs, and also emphasised the need for consistency in the requirements set out in their Implementing Technical Standards (ITS) draft on Pillar 3 ESG risks.

To enable greater comparability between EU and non-EU companies which adopt the standards, the EBA has stressed the importance of EFRAG and the ISSB cooperating with one another as they finalise their consultations.

What next?

The response from the EBA reflects the increasing importance of ESG reporting and the need for clear guidelines.

If ESG reporting is a new priority for your organisation and you’d like more information on what to expect from the requirements, read our expert paper summarising all you need to know, here.

You can read the EBA’s responses to EFRAG and ISSB here.