Platform on Sustainable Finance publishes report on simplifying the EU taxonomy

On 5 February 2025, the Platform on Sustainable Finance published a report containing a series of evidence-based recommendations to simplify taxonomy reporting and improve its effectiveness.

The report proposes five main measures to simplify taxonomy reporting.

1. Refinement of the assessment and reporting requirements for the ‘Do No Significant Harm’ criteria (DNSH) by differentiating between users (non-financial companies vs financial companies), KPIs (revenue vs capital expenditure) and regions (EU vs non-EU)
2. Introduction of a materiality principle applicable to all companies, materiality thresholds for all key performance indicators (KPIs) for non-financial companies and a simplified DNSH assessment for the revenue KPI. Clarification of the KPIs for the calculation of operating expenses (OpEx KPIs) while limiting their mandatory scope to research and development (R&D)
3. Establishing clear guidelines for the use of estimates within the taxonomy framework and creating safe harbours for financial sector reporting
4. Enabling proxies and estimates for all assets in the context of the Green Asset Ratio (GAV). Enabling proxies and estimates for
5. all assets related to the Green Asset Ratio (GAR) and Green Investment Ratio (GIR) while introducing a simplified assessment for retail exposures and a simplified denominator for different asset classes
6. Developing simplified and voluntary approaches for small and medium-sized enterprises (SMEs), banks and investors, to integrate the taxonomy into their disclosures

The Platform on Sustainable Finance will present the report in a webinar on 14 February from 14:00 to 15:00 CET.

The report can be accessed via the following link.