On 16 April 2026,The European Banking Authority (EBA) proposed a significant overhaul of its ESG supervisory reporting framework, emphasizing proportionality and administrative simplification. Aligned with the EU’s broader “Omnibus I” initiative and CRR3 requirements, the update introduces a three-tiered reporting structure tailored to institutional size and complexity.Key revisions include the removal of several EU Taxonomy-related templates—specifically the Banking Book Taxonomy Alignment Ratio (BTAR)—from supervisory reporting, though these remain within public Pillar 3 mandates. Large institutions with assets exceeding €30 billion will follow a framework largely aligned with Pillar 3, while Small and Non-complex Institutions (SNCIs) will benefit from a drastically reduced burden. SNCIs are now only required to submit a single, simplified annual template focused on climate risks, notably excluding GHG financed emissions.
This strategic recalibration aims to ensure that supervisory authorities receive essential risk data while mitigating the compliance overhead for the banking sector, particularly for smaller market participants.
Source: https://www.esgtoday.com/eba-proposes-major-simplification-for-esg-supervisory-reporting-requirements-for-banks/