ESAs consult on technical advice on selected KPIs under Taxonomy Disclosures Delegated Act

The European Securities and Markets Authority (ESMA) has launched a consultation on technical advice to the European Commission (EC) regarding selected key performance indicators (KPIs) under the Taxonomy Disclosures Delegated Act. The consultation follows the EC's request to the European Supervisory Authorities (ESAs) in March for targeted technical advice to support its review of the Taxonomy Disclosures Delegated Act under Article 8 of the Taxonomy Regulation (EU) 2020/852. The review forms part of the EC's broader Omnibus simplification agenda and aims to reduce reporting burdens while maintaining meaningful sustainability disclosures for investors.

ESMA proposes measures to simplify the EU Taxonomy disclosure framework for non-financial undertakings and asset managers, including changes relating to the operational expenditure KPI and to address concerns about complexity and reporting burden. Feedback is also sought on a potential pragmatic approach to group-level reporting in mixed groups, based on the parent undertaking's reporting model.

In parallel, the European Banking Authority (EBA) published a discussion paper and the European Insurance and Occupational Pensions Authority launched a consultation on matters within their respective remits, including removing the commissions and fees KPI or narrowing to capital markets-related activities, replacing the trading book KPI or narrowing its scope to providing market liquidity, and the underwriting KPI of insurance/reinsurance undertakings.

The deadline for comments on all three papers is 12 August.

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