The European Securities and Markets Authority has published a Final Report offering technical advice to the European Commission aimed at streamlining reporting under the Taxonomy Disclosures Delegated Act.
Proposed Simplifications to Key Performance Indicators
The European Securities and Markets Authority recommends narrowing the scope of mandatory operating expenditure key performance indicators. Under the technical advice, the mandatory OpEx KPI would be restricted to non-capitalised research and development expenditure.
The regulator also proposes streamlining group-level Taxonomy reporting, which includes removing the weighted-average KPI. Additional targeted measures are intended to render disclosures clearer, easier to use and more proportionate for reporting entities.
The technical advice was developed in coordination with other European Supervisory Authorities, addressing aspects such as the voluntary use of counterparties' OpEx information alongside group-level Taxonomy disclosures.
Regulatory Submission and Next Steps
ESMA has formally submitted the Final Report and its advice to the European Commission for consideration during the Commission's review of the Taxonomy Disclosures Delegated Act.
The proposed adjustments are designed to support regulatory simplification and reduce reporting burdens. At the same time, the measure aims to ensure disclosures remain decision-useful, comparable and reliable across the European Union.
