EBA proposes simpler taxonomy disclosure rules for EU banks and investment firms

Traders Union
All News
Regulators
EBA proposes simpler taxonomy rules

Highlights

EBA recommends removing the Fees and Commission's KPI and Trading Book KPI from EU taxonomy disclosure rules, simplifying 'other services' KPI for investment firms.
EBA advises aligning grandfathering provisions with the EU Green Bond Regulation and simplifying group disclosures using parent undertaking’s KPIs, with possible secondary activity inclusion.
Targeted changes to templates for asset managers and credit institutions are proposed to reduce complexity, clarify Green Asset Ratio, and improve sustainability data usability across EU banks.

Commission review and proposed rule changes

As reported by the European Banking Authority, the advice responds to a March 2026 request from the European Commission for technical input on key performance indicators and other parts of the Disclosures Delegated Act under Article 8 of the Taxonomy Regulation. The review is intended to support the Commission's forthcoming revision of the framework as well as wider simplification efforts under the Omnibus Delegated Act.

The EBA focuses its recommendations on five areas. It proposes removing the Fees and Commission's KPI and the Trading Book KPI from taxonomy disclosure requirements, simplifying the 'other services' KPI used by investment firms, and aligning grandfathering provisions with the EU Green Bond Regulation for bonds issued under that regime.

The authority also advises against introducing the operational expenditure KPI disclosed by non-financial undertakings into the calculation of financial undertakings' KPIs. In addition, it recommends 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.

Broader disclosure impact for the EU financial sector

The EBA says the broader disclosure framework would also benefit from targeted template changes. These include simplifying and harmonising templates covering credit institutions' asset management activities, asset managers' activities and investment firms' activities, while also clarifying Green Asset Ratio templates used by credit institutions.

The advice incorporates feedback from a public consultation and is developed in cooperation with the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority. Under Regulation (EU) No 1093/2010, the EBA may provide technical advice to the European Commission on matters within its competence when requested.

The recommendations also fit into the EBA's wider campaign, "Simplifying to strengthen: building a more efficient EU prudential and supervisory framework." For the EU banking sector, the proposed changes are aimed at cutting unnecessary complexity, improving the usability of sustainability data and preserving disclosures that remain meaningful for supervisors and market participants.

In our earlier article on Mario Draghi’s warning about monetary policy trade-offs, we explained his argument that keeping interest rates above growth for too long can worsen debt dynamics and raise pressure for “fiscal dominance,” even as central banks must still prioritise inflation control. The piece also stressed that overly restrictive policy can damage productivity by lifting the cost of capital, and highlighted Draghi’s call for EU-level measures—such as deeper market integration and targeted industrial policy—to sustain investment and long-term resilience.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.