The European Banking Authority has delivered technical advice to the European Commission proposing targeted simplifications to EU Taxonomy disclosure rules for financial institutions.
Streamlining Key Performance Indicators
On 29 October 2026, the European Banking Authority published its response to the European Commission's request for technical advice regarding disclosures under Article 8 of the Taxonomy Regulation. The proposals aim to reduce operational complexity and improve the usability of sustainability data reported by credit institutions and investment firms.
The advice addresses five core areas of disclosure. Key recommendations include removing both the Fees and Commission's KPI and the Trading Book KPI from current Taxonomy reporting frameworks. The Authority also advised against incorporating operational expenditure KPIs disclosed by non-financial undertakings into the KPI calculations of financial undertakings.
Aligning Rules and Templates Across Financial Entities
To streamline reporting, the EBA proposed simplifying the 'other services' KPI for investment firms, including services tied to capital markets. In addition, grandfathering rules would be aligned specifically with bonds issued under the EU Green Bond Regulation.
For corporate structures, group disclosures would be simplified by relying on parent undertaking KPIs, complemented by KPIs for material secondary activities where appropriate. The EBA also recommended clarifying Green Asset Ratio templates for credit institutions and harmonising disclosure templates across asset management and investment activities.
Regulatory Background and Next Steps
The advice responds to a March 2026 request from the European Commission to support its upcoming review of the Disclosures Delegated Act and broader simplification initiatives under the Omnibus Delegated Act. Developed under Article 16a (4) of Regulation (EU) No 1093/2010, the technical advice was prepared in cooperation with ESMA and EIOPA following public consultation.
This deliverable forms part of the EBA Task Force on Efficiency work program, intended to streamline European supervisory and prudential frameworks while retaining meaningful sustainability reporting.
