The European Supervisory Authorities (ESAs)—comprising the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA)—have published a package of proposed amendments aimed at simplifying reporting requirements under the EU Taxonomy Regulation.
The proposals were developed in response to the European Commission’s request for technical advice as part of its broader sustainability reporting simplification agenda. The objective is to reduce unnecessary reporting complexity while preserving the quality and comparability of sustainability disclosures across Europe’s financial sector.
Key Proposed Changes
The proposed amendments introduce several targeted measures to reduce the reporting burden for financial institutions.
Among the most significant proposals is ESMA’s recommendation to simplify the operational expenditure (OpEx) Key Performance Indicator (KPI) by limiting it primarily to research and development (R&D) expenditure. According to the regulators, this change would significantly reduce the amount of information firms need to collect and report while maintaining the usefulness of the KPI.
The EBA has also proposed simplifying Green Asset Ratio (GAR) reporting, including narrowing the scope of certain trading book KPIs and removing reporting elements that have demonstrated limited supervisory value since implementation.
In addition, the three ESAs have jointly proposed technical amendments covering:
• Simplified group-level reporting requirements.
• Clarifications on the use of OpEx KPIs by financial institutions.
• Greater consistency across reporting templates.
• Removal of duplicative or low-value disclosure requirements.
• Improved proportionality for institutions with less complex reporting obligations.
Collectively, these measures aim to make EU Taxonomy reporting more efficient without reducing transparency for investors or regulators.
Part of the EU’s Broader Simplification Agenda
The proposals align with the European Commission’s ongoing efforts to simplify sustainability reporting requirements under its Omnibus package.
Earlier simplification initiatives reduced the number of mandatory EU Taxonomy reporting data points, introduced materiality thresholds for certain disclosures, and sought to eliminate reporting obligations considered disproportionately burdensome. The latest ESA proposals build on these efforts by focusing specifically on the supervisory reporting framework used by financial institutions.
Why It Matters
The EU Taxonomy remains one of the most comprehensive sustainable finance classification systems globally. However, many organizations have reported that collecting, validating, and reporting the required data is resource-intensive.
If adopted, the proposed changes could help financial institutions:
• Reduce the volume of data required for regulatory reporting.
• Improve reporting efficiency through simplified KPI calculations.
• Minimize administrative effort associated with Green Asset Ratio reporting.
• Focus resources on higher-value sustainability reporting activities while maintaining regulatory compliance.
The proposals also demonstrate the EU’s commitment to balancing robust sustainability disclosures with practical implementation requirements.
What Happens Next?
The proposed amendments will undergo the EU legislative and regulatory review process before being finalized. Organizations subject to EU Taxonomy reporting should continue monitoring developments and assess how the proposed changes may affect their reporting processes once implementation timelines are confirmed.
How EcoActive Helps
As EU sustainability regulations continue to evolve, organizations need flexible reporting systems that can quickly adapt to regulatory changes.
EcoActive helps organizations:
Manage EU Taxonomy reporting from a centralized platform.
Streamline sustainability data collection and validation.
Automate disclosure workflows and approvals.
Stay aligned with evolving EU reporting requirements through configurable reporting frameworks.
As reporting obligations continue to change under the EU’s broader simplification agenda, organizations with modern disclosure management platforms will be better positioned to adapt quickly while maintaining compliance.
Stay ahead of evolving sustainability reporting requirements. Discover how EcoActive helps organizations streamline EU Taxonomy reporting, manage regulatory change, and deliver audit-ready disclosures with confidence.
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