Tuesday, 7 July 2026
The European Banking Authority (EBA) has launched a public consultation on proposals to simplify selected disclosure requirements under the EU Taxonomy framework for banks and investment firms.
The consultation, which opened on 1 July 2026, seeks feedback on changes designed to reduce the reporting burden while maintaining the transparency and comparability of sustainability-related disclosures. Responses can be submitted until 12 August 2026, with a public hearing scheduled for 16 July.
The proposals form part of a broader European Union initiative to streamline sustainability reporting. In March 2026, the European Commission asked the European Supervisory Authorities to provide advice on selected key performance indicators (KPIs) contained in the Taxonomy Disclosures Delegated Act.
Among the proposed changes are simplified KPIs covering banks’ fees and commissions, trading book activities and off-balance-sheet exposures. For investment firms, the EBA proposes introducing a simplified “other services” KPI intended to make reporting requirements easier to apply.
The consultation also proposes aligning grandfathering provisions with the EU Green Bond Regulation, providing additional guidance on group-level Taxonomy disclosures and clarifying how operating expenditure (OpEx) KPIs reported by non-financial companies should be treated when used by financial institutions.
According to the EBA, the objective is to simplify reporting requirements without reducing the usefulness of sustainability disclosures for investors and other market participants.
The proposals could affect banks’ and investment firms’ reporting processes, including data collection, KPI calculations, governance arrangements and internal controls. Banking groups operating across multiple jurisdictions may also need to review their consolidated reporting processes in light of the proposed guidance on group-level disclosures.
Institutions relying on sustainability information provided by non-financial counterparties are expected to assess how operating expenditure data is sourced, validated and incorporated into their own Taxonomy reporting.
Following the consultation, feedback will be used to support the European Commission’s review of the Taxonomy Disclosures Delegated Act, which forms part of the EU’s sustainable finance framework.
Source: Deloitte
