The European Securities and Markets Authority (ESMA) has launched a consultation on technical advice for selected key performance indicators (KPIs) under the Taxonomy Disclosures Delegated Act, seeking stakeholder input to refine disclosure requirements for sustainable finance. The consultation paper, published on 1 July 2026, focuses on KPIs related to taxonomy-aligned economic activities, aiming to enhance transparency and comparability for investors.
ESMA's consultation targets specific KPIs that firms must disclose under the EU Taxonomy Regulation, including turnover, capital expenditure (CapEx), and operating expenditure (OpEx) related to environmentally sustainable activities. The paper proposes clarifications on calculation methodologies, scope, and presentation to ensure consistent application across the EU. Stakeholders are invited to provide feedback by 30 September 2026, with ESMA expected to deliver final technical advice to the European Commission by early 2027.
The initiative builds on the Taxonomy Disclosures Delegated Act, which mandates non-financial and financial companies to report on taxonomy alignment. ESMA's role is to advise on technical standards to improve data quality and reduce greenwashing risks. The consultation addresses industry concerns about complexity and costs, balancing the need for detailed disclosures with proportionality for smaller firms. Positive impacts include increased investor confidence and market integrity, while negative impacts involve potential compliance burdens for companies, particularly those with limited resources. ESMA's advice will influence future Commission delegated acts, shaping the regulatory landscape for sustainable finance in the EU.