Simplification of the Delegated Acts of the EU Taxonomy – More Ambition is Needed

As part of the omnibus proposal, the EU Commission has launched a consultation on simplifying and streamlining the delegated acts of the EU Taxonomy Regulation. We welcome this initiative, but suggest a more ambitious approach. The materiality thresholds proposed by the EU do not sufficiently reduce the reporting burden on companies. We therefore advocate the introduction of a general materiality principle, such as that of the International Financial Reporting Standards, to determine whether economic activities are material and reportable. We also suggest removing the OpEx KPI as it is difficult to calculate and of very little relevance to financial market participants.