ESMA recommends narrower OpEx and group Taxonomy KPIs
On October 29, 2026, ESMA submitted final technical advice proposing a simpler EU Taxonomy reporting framework, including limiting the mandatory operating-expenditure KPI to non-capitalised research and development and removing the weighted-average group KPI.
Inside Practice · OCTOBER 30, 2026 · 1 MIN READ
On October 29, 2026, ESMA submitted final technical advice proposing a simpler EU Taxonomy reporting framework, including limiting the mandatory operating-expenditure KPI to non-capitalised research and development and removing the weighted-average group KPI. For reporting teams, the proposal would reduce calculation burdens without eliminating the need to substantiate alignment at activity level. Law firms should help clients map which OpEx categories would fall out of mandatory reporting while preserving controls for voluntary or investor-requested metrics. The next operational checkpoint is the European Commission’s decision on whether and how to translate the advice into amendments, because implementation timing and transitional relief will determine the real compliance savings.