The European Banking Authority has advised the European Commission on focused changes to EU Taxonomy reporting. The proposals aim to reduce complexity while preserving meaningful sustainability information.
What the EBA advice covers
The European Banking Authority published its response to the European Commission’s request for technical advice on key performance indicators and other elements of the Disclosures Delegated Act under Article 8 of the Taxonomy Regulation. The request was made in March 2026 as part of the Commission’s review of the delegated act and wider simplification work under the Omnibus Delegated Act.
The advice is not presented as a general withdrawal of Taxonomy reporting. Instead, it identifies targeted changes intended to make disclosures easier to use and less complex while retaining meaningful sustainability information. The work was developed with ESMA and EIOPA and took account of feedback from a public consultation.
Five proposed areas of simplification
The EBA focuses on five areas:
- removing the Fees and Commission KPI and the Trading Book KPI from Taxonomy disclosure requirements;
- simplifying the investment firms’ “other services” KPI, including capital-markets-related services;
- aligning grandfathering provisions with the EU Green Bond Regulation, limited to bonds issued under that regulation;
- not introducing an operating-expenditure KPI disclosed by non-financial undertakings into the calculation of financial undertakings’ KPI; and
- simplifying group disclosures by using the parent undertaking’s KPIs and, where relevant and subject to defined conditions, adding KPIs for material secondary activities without further aggregation.
The EBA also refers to broader work on simplifying and harmonising templates for credit institutions, asset managers and investment firms, including clarification of Green Asset Ratio templates for credit institutions.
Editorial interpretation: the common thread is targeted streamlining rather than a single replacement metric. The proposals address which indicators are required, how certain activities are treated and how information is aggregated across groups.
What changes for interpretation—and what does not
For readers tracking financial regulation, the immediate significance is that the EBA has recommended specific adjustments to the reporting framework. The advice could make some disclosures less burdensome and more usable, particularly where the current framework involves several activity-specific KPIs or additional aggregation. That is an interpretation of the stated objectives; the source does not quantify compliance savings or assess the effect on any particular institution.
The release does not establish that the proposed changes are already binding. It describes advice to the European Commission in support of a forthcoming review. The source also does not provide new Taxonomy performance data, a revised final legal text, institution-level results or a measure of how sustainability outcomes would change.
The accompanying EIOPA publication is a separate supervisory update: its October 2026 dashboard covers European insurers’ risks using Solvency II data from the second quarter of 2026 and end-2025, with market data through the end of September 2026. It highlights market and cyber risks, while the EBA release concerns Taxonomy disclosure simplification. The two publications therefore provide regulatory context from different sectors, but the available sources do not support a joint conclusion about the effects of the EBA proposals on insurers or wider financial markets.
What to watch next
A focused reading checklist follows directly from the advice:
- Track the European Commission’s review of the Disclosures Delegated Act, because the EBA document is technical advice rather than the final amended framework.
- Check the final treatment of each of the five areas separately. The release describes targeted proposals, including conditions for secondary-activity KPIs and a limited approach to grandfathering under the EU Green Bond Regulation.
- Compare the final templates with the current ones for credit institutions, asset managers and investment firms, including the Green Asset Ratio templates mentioned by the EBA.
- Separate reporting simplification from sustainability performance. The source discusses disclosure requirements and usability; it does not claim that the underlying environmental or financial activities have changed.
The key next signal is therefore not a new market statistic, but the outcome and details of the Commission’s review.
Key takeaways and FAQs
What is the EBA proposing to simplify?
The EBA proposes targeted changes covering five areas: removing two KPIs, simplifying the investment firms’ “other services” KPI, aligning certain grandfathering provisions with the EU Green Bond Regulation, excluding a new operating-expenditure KPI from financial undertakings’ KPI calculations, and simplifying some group disclosures.
Are the proposed Taxonomy changes already legally binding?
No. The release presents the EBA’s technical advice to the European Commission. It does not state that the proposed changes are already binding or that a final amended framework has been adopted.
Does the advice remove EU Taxonomy disclosure requirements altogether?
No. The advice recommends targeted adjustments to selected KPIs, templates and aggregation rules. The source does not describe a complete withdrawal of Taxonomy disclosure requirements.
What to take away
The EBA’s release is best understood as a proposal to reduce selected reporting complexity, not as a final rewrite of EU Taxonomy disclosures. The next important development is the European Commission’s review and the precise legal and template changes that follow. Until then, the source supports conclusions about regulatory design and reporting usability—not about institution-level performance or broader market outcomes.
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This article is informational and does not replace financial, investment or mortgage advice.
