The EBA advises on targeted simplifications to Taxonomy disclosures

The EBA has responded to the European Commission's Call for Technical Advice on the Disclosures Delegated Act under Article 8 of the EU Taxonomy Regulation, recommending targeted refinements to the key performance indicators (KPIs) and related disclosures that credit institutions and investment firms must publish. For RegCanary readers, the signal is clear: Brussels is listening to industry concerns that current taxonomy reporting is overly complex and costly, and a lighter-touch framework may be on the horizon. Importantly, this is advisory only — no rules have changed yet, so existing disclosure obligations under the Delegated Act remain fully in force.

Compliance teams should treat this as a forward-looking planning cue rather than an immediate remediation trigger. Practical steps: (1) monitor the Commission's follow-up and any draft amendments to the Delegated Act; (2) map which KPIs (for example, the Green Asset Ratio and related templates) would be affected by simplification; (3) benchmark current data-collection and assurance processes to identify where reduced burden could free resources; and (4) feed practical implementation experience into trade-body consultations. Firms should also guard against relaxing governance — supervisors will continue scrutinising taxonomy data quality, comparability and greenwashing risk during any transition.

Balance the opportunity of lower reporting overhead against the need for robust, auditable sustainability data.