Under the recent Pillar 3 Update on ESG risk, equity and shadow banking exposure release by EBA, EBA has introduced the use of the updated NACE Rev. 2.1 classification in certain templates.

In particular:

• Template CQ5 has been amended to reflect economic activities based on NACE Rev. 2.1, as set out in Commission Delegated Regulation (EU) 2023/1372.
• Other ESG-related Pillar 3 templates (e.g. CR FR1 and CR FR2) have also been updated to incorporate the revised NACE classification and enhanced sector definitions.

At the same time, based on the current EBA ITS on supervisory reporting, the FINREP template F 06.01 (Breakdown of loans and advances by economic activity) appears to continue to rely on NACE Rev. 2 (Regulation (EC) No 1893/2006).

Given that:

• Pillar 3 template CQ5 is typically mapped or reconciled to FINREP template F 06.01, and
• Different NACE versions are now being applied across these frameworks,

In this context, could EBA please clarify whether institutions are expected to apply different NACE versions (Rev. 2.1 for Pillar 3 vs Rev. 2 for FINREP/COREP) in parallel?  Is the EBA planning to update FINREP and COREP to incorporate NACE Rev. 2.1 in the near future, in order to ensure alignment with Pillar 3 disclosures?