ESMA proposes simpler EU Taxonomy reporting

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Final Report providing technical advice to the European Commission on simplifying key performance indicators under the Taxonomy Disclosures Delegated Act.

ESMA recommends narrowing the mandatory operating expenditure (OpEx) KPI to non-capitalised research and development expenditure. It also proposes simpler group Taxonomy reporting, including removing the weighted-average KPI, and targeted measures to make disclosures more proportionate, clearer and easier to use.

The Technical Advice was coordinated with the other European Supervisory Authorities, in particular on the voluntary use of counterparties’ OpEx information and group-level Taxonomy reporting.

The proposals support ESMA’s simplification and burden reduction objectives, while focussing reporting on information that is useful for decision-making, and preserving the relevance, comparability and reliability of Taxonomy disclosures.

Next steps

ESMA has submitted the Final Report and its technical advice to the European Commission for consideration in its review of the Taxonomy Disclosures Delegated Act.

Further information:

Ana Dilaverakis

Communications Officer

press@esma.europa.eu