Final report on Technical Advice on selected KPIs under the Taxonomy Disclosures Delegated Act
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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
This is the final report from ESMA, the EU's stock market watchdog, on simplifying the indicators companies use to show how much of their activity is sustainable under the Taxonomy, the EU's official classification of what counts as 'green'. It proposes fewer indicators and relief for company groups, and advises fund managers against using certain spending data from other firms. The Commission now decides.
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