EU – October 29, 2026 -- The European Securities and Markets Authority (ESMA) has recommended limiting the mandatory operating expenditure (OpEx) KPI under the EU Taxonomy to non-capitalised research and development expenditure, according to a Final Report submitted to the European Commission.
ESMA narrows the mandatory OpEx KPI to non-capitalised R&D spending
The report contains ESMA's technical advice on simplifying key performance indicators under the Taxonomy Disclosures Delegated Act. The change would cut the scope of the OpEx metric that companies must report.
ESMA proposes removing the weighted-average KPI from group Taxonomy reporting
ESMA also proposes simpler group-level Taxonomy reporting, including removal of the weighted-average KPI. Further targeted measures aim to make disclosures more proportionate, clearer and easier to use.
The advice was coordinated with the other European Supervisory Authorities, in particular on the voluntary use of counterparties' OpEx information and on group-level reporting.
ESMA ties the proposals to burden reduction while preserving comparability
ESMA says the proposals support its simplification and burden-reduction objectives. They focus reporting on information useful for decision-making and preserve the relevance, comparability and reliability of Taxonomy disclosures.
Commission to weigh the advice in its Delegated Act review
ESMA has submitted the Final Report to the European Commission for consideration in its review of the Taxonomy Disclosures Delegated Act.