ESMA proposes simpler EU Taxonomy reporting
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ESMA has delivered to the European Commission its final technical advice on simplifying the KPIs under the Taxonomy Disclosures Delegated Act. It proposes narrowing the mandatory operating expenditure (OpEx) KPI to non-capitalised R&D, removing the weighted-average KPI in group reporting and introducing proportionality reliefs.
Key points
- Mandatory OpEx restricted to non-capitalised R&D expenditure; no prescribed requirements for a voluntary 'OpEx+' KPI.
- Groups: weighted-average KPI removed and main regime set by the nature of the parent, with simplified disclosures for secondary businesses (10% cumulative threshold).
- Optional reliefs for acquisitions, disposals and comparatives, cross-references to ESRS and a one-year phased application.
- The ESAs advise against financial undertakings, especially asset managers, using counterparties' OpEx.
Who is affected
Non-financial undertakings and asset managers subject to Article 8 of the Taxonomy Regulation; auditors and users of sustainability information.
Deadlines
Advice submitted to the Commission for its review of the Delegated Act; no application date yet.
Plain-language version
ESMA, the EU watchdog for stock markets and investment products, has proposed to the European Commission a simpler way for companies to report how much of their business is 'green' under the Taxonomy, the EU's official list of sustainable activities. For example, the mandatory spending indicator would only cover research and development. The aim is less paperwork; there is no start date yet.
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