Proposal to simplify reporting in accordance with the EU Taxonomy Regulation

On February 26, 2025, the Commission of the European Union published proposals for amendments to the EU Taxonomy Regulations on content and presentation (Disclosure Delegated Act (EU) 2021/2178), the Climate Delegated Act (EU) 2021/2139) and the Environmental Delegated Act (EU) 2023/2486) to accompany its proposal for the First Omnibus Package.

The Commission proposes, among other things

• simplify the reporting templates, resulting in a reduction of data points by approximately 70%,
• introduce a materiality concept whereby companies no longer need to assess the taxonomy eligibility and compliance of economic activities that account for less than 10% of their total revenue, capital expenditure or assets,
• adjust the Green Asset Ratio (GAR) to exclude assets from the denominator that relate to companies that do not fall within the future scope of the CSRD.

In addition, the Commission invites stakeholders to comment on two alternative options for simplifying particularly complex “do no significant harm” criteria for pollution prevention and control. The consultation period ends on March 26, 2025.

The Commission plans to finally adopt the amendments in the second quarter of 2025. Following the subsequent objection period of four months, the amended Delegated Regulations for taxonomy reporting are to enter into force from January 1, 2026 (for the 2025 reporting period).

The proposed amendments can be accessed here.