The EU Platform on Sustainable Finance has published a
report on enhancing the usability of the EU's Taxonomy regime. The report takes account of the European Commission's stated ambition to streamline ESG reporting requirements through the proposed Omnibus simplification regulation. The Platform makes four core proposals for simplifying Taxonomy-related reporting, namely:
- reducing the corporate reporting burden by over a third by taking steps such as enhancing the alignment with financial reporting and simplifying reporting templates.
- simplifying the green asset ratio (GAR) by ensuring a symmetrical GAR with similar numerator and denominator composition and allowing for estimates and proxies for reporting.
- taking a practical approach to the do-no-significant-harm criteria under the Taxonomy regime.
- helping SMEs access sustainable finance by adopting a streamlined and voluntary approach for banks' and investors' exposures to unlisted SMEs and a simplified approach to the Taxonomy for listed SMEs.
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