EU simplifies taxonomy reporting to reduce compliance burden for businesses by 2026

• Companies exempt from reporting on non-material activities, defined as less than 10% of revenues, CapEx, or OpEx.
• Simplified reporting templates: Data points were reduced by 64% for non-financial companies and 89% for financial companies.
• The new measures will apply from January 2026, with the option to delay them until the 2026 financial year.

The European Commission has adopted a delegated act to optimise the EU taxonomy framework, significantly facilitating regulatory compliance for financial and non-financial firms. The changes are part of a broader effort under the Omnibus I package to reduce administrative and reporting burdens across sustainability regulations.
“Today we take a decisive step towards a more growth-friendly, usable and proportionate sustainable finance framework,” said Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investment Union.
“Our measures simplify the implementation of the EU Taxonomy and strike the right balance between reducing the excessive administrative burden on our businesses while keeping our long-term goals in focus, including the transition to a sustainable economy.”

Maria Luís Albuquerque, Commissioner of Financial Services and the Savings and Investment Union

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