The European Banking Authority (EBA) has launched a consultation on simplifying key performance indicators (KPIs) and other aspects of the Taxonomy Disclosures Delegated Act under Article 8 of the Taxonomy Regulation, aiming to enhance the usability of information disclosed by credit institutions and investment firms. The Discussion Paper, published on 1 July 2026, seeks public feedback until 12 August 2026, with a public hearing scheduled for 16 July 2026.
The consultation responds to a targeted Call for Technical Advice from the European Commission in March 2026, which also involved the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA). The ESAs' input will support the Commission's forthcoming review of the Taxonomy Disclosures Delegated Act and contribute to broader simplification efforts under the Omnibus Delegated Act.
The EBA's Discussion Paper outlines preliminary proposals on simplifying the Fees and Commission's KPI, Trading Book KPI, and Off-balance sheet exposures KPI for credit institutions, as well as the 'other services' KPI for investment firms. It also suggests aligning grandfathering provisions for financial instruments under Taxonomy disclosures with those in the EU Green Bond Regulation, clarifying group-level disclosures, and addressing the treatment of operational expenditure KPI disclosed by non-financial undertakings in the calculation of financial undertakings' KPI.
EIOPA and ESMA are conducting parallel consultations within their respective areas of competence. The three ESAs will cooperate closely in developing their advice and submit their responses to the European Commission in October 2026.
The consultation impacts credit institutions and investment firms, which may face reduced compliance costs from simplified KPIs but could also need to adjust reporting systems. Non-financial undertakings may see changes in how their operational expenditure data is used by financial firms. EU regulators benefit from more standardized disclosures, while investors gain improved comparability of taxonomy-aligned activities. The proposals aim to balance simplification with maintaining transparency for sustainable finance.