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      Highlights

      – What’s happened?

      – Which KPIs could be affected?

      – Next steps

      Following the Omnibus simplification package, the European Supervisory Authorities (ESAs)1 have proposed further amendments. They aim to make EU Taxonomy reporting more useful, proportionate, comparable and decision-relevant while reducing unnecessary reporting effort.

      Companies now have an opportunity to influence the future design of the framework through the consultation process2.

      Jan A. Müller

      Partner

      KPMG in Germany

      Many stakeholders agree on the objective of accelerating investment in sustainable activities. The challenge is turning the EU Taxonomy into a framework that meaningfully influences capital allocation. The number of proposals indicate that policymakers continue to see significant scope for reworking the Taxonomy framework rather than merely refining it at the margins.

      Jan A. Müller,

      Chair, Taxonomy Working Group

      What’s happened?

      The EU Taxonomy reporting framework continues to evolve. ESMA, EBA and EIOPA are proposing a long list of possible amendments to reporting requirements that many companies find complex, or not sufficiently relevant to users’ needs. This follows a request by the European Commission.

      The proposals would affect how companies approach key performance indicators (KPIs) under the EU Taxonomy framework, including how the KPIs are defined and reported. For many reporters, this could mean applying more judgement and explaining more clearly how their activities support sustainable outcomes.

      The ESAs conducted three public consultations in  July-August 2026 (now closed).  The ESAs are due to submit their final technical advice to the Commission by October 2026. Based on this advice, the Commission aims to finalise its review of the Taxonomy Disclosures Delegated Act and adopt any amendments in Q1 2027. The Commission currently expects the revised disclosure requirements to enter into force in Q3 2027.

      Which KPIs could be affected?

      diagram

      The proposals also highlight significant scope for further simplification, with 15 additional proposals under consideration across the three consultations. These include new reporting reliefs, simplified templates and datapoints, and refinements to KPI methodologies. Notably, ESMA is proposing to make voluntary the reporting of certain more complex Taxonomy KPI elements, including CapEx related to the purchase of taxonomy-eligible or -aligned output, turnover from internal activities, and the adjusted turnover KPI in the context of green bond issuance.

      Next steps

      The public consultations ended on 12 August. The ESAs will now consider the feedback received and aim to finish their technical advice and submit it to the Commission by October 2026.

      At the same time, the Commission is working on updating the technical screening criteria (TSC) in the Climate and Environmental Delegated Acts. The adoption of these amendments is expected in Q4 2026.

      Speak to your KPMG contact to find out more about the proposals and visit kpmg.com/ifrs to keep up to date with the latest news.

      1 The European Supervisory Authorities comprise the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA).

      2 The consultations are published separately for each ESA: ESMA, EBA and EIOPA.

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