ESMA Final Report Proposes Simpler EU Taxonomy Reporting with a Narrower OpEx KPI

📅 29 October 2026 • European Securities and Markets Authority • ESMA Final Report Proposes Simpler EU Taxonomy Reporting with a Narrower OpEx KPI

On 29 October 2026, the European Securities and Markets Authority (ESMA) published its Final Report with technical advice to the European Commission on simplifying key performance indicators under the Taxonomy Disclosures Delegated Act (EU) 2021/2178. The document carries the reference ESMA32-846262651-5927 and follows a public consultation that ran from 1 July to 12 August 2026. ESMA has submitted the report to the Commission for consideration in its review of the Delegated Act.

A narrower OpEx KPI

The central proposal narrows the mandatory operating expenditure (OpEx) KPI to non-capitalised research and development expenditure, while the existing materiality reliefs remain in place. ESMA does not recommend introducing prescribed requirements for a voluntary OpEx+ KPI. Instead, it advises clarifying the status of voluntary Taxonomy-related disclosures and applying safeguards on reconciliation, transparency, comparability and greenwashing risks. The revised KPI framework would be monitored for five years.

Simpler group reporting

For group-level Taxonomy reporting, ESMA proposes removing the weighted-average group KPI and simplifying how the main reporting regime is determined, primarily by reference to the nature of the parent undertaking. Where groups have secondary businesses of a different nature, simplified disclosures are advised so that material information is not lost. The measures aim to make disclosures more proportionate, clearer and easier to use, while preserving the relevance, comparability and reliability of Taxonomy disclosures.

Coordinated action across the ESAs

The technical advice was coordinated with the other European Supervisory Authorities, in particular on the voluntary use of counterparties' OpEx information and group-level reporting. On the same day, 29 October 2026, the European Banking Authority (EBA) published its own Final Report advising on five areas, including removing the Fees and Commissions KPI and the Trading Book KPI for credit institutions and investment firms. Together, the two reports form a coordinated simplification agenda that now rests with the European Commission.

IMPACT

Reporting teams at non-financial undertakings and asset managers would need to redefine OpEx data collection around non-capitalised research and development expenditure.
Group finance functions would no longer calculate the weighted-average group KPI, reducing consolidation effort.
Any voluntary Taxonomy disclosure would require reconciliation and transparency safeguards.
The changes are technical advice, so application depends on the European Commission's review of and amendments to the Delegated Act.

Sources:

Continue the conversation: https://t.me/ComplianceExplained · Bluesky

DEV Community

ESMA Final Report Proposes Simpler EU Taxonomy Reporting with a Narrower OpEx KPI

Top comments (0)