The European Securities and Markets Authority (ESMA) has launched a public consultation, active until August 12, 2026, to gather feedback on proposed revisions to the Disclosures Delegated Act (DDA) under the European Union Taxonomy Regulation.

This initiative follows a request from the European Commission on March 4, 2026, and seeks to enhance the usability, relevance, and proportionality of the existing framework.

The consultation addresses several key areas, with a primary focus on the OpEx Key Performance Indicator (KPI).

ESMA’s preliminary analysis suggests that the current OpEx KPI offers limited value to stakeholders, as it is often perceived as complex and less informative than Turnover or CapEx metrics.

To address this, the authority is proposing four potential approaches, with a preference for narrowing the mandatory OpEx KPI to Research & Development expenditure while introducing an optional OpEx+ ratio for companies wishing to report additional green procurement costs.

Another central theme is Group Taxonomy Reporting.

ESMA, in coordination with other European Supervisory Authorities, identified significant challenges regarding the aggregation of KPIs for mixed groups and financial conglomerates.

The authority proposes moving away from weighted-average KPIs, which are currently used in guidance, in favour of a regime where the main reporting requirements are determined by the parent company’s business type, complemented by targeted disclosures to prevent material information gaps.

Furthermore, the consultation explores broader measures to reduce the reporting burden on businesses.

These include introducing specific reliefs similar to those in the European Sustainability Reporting Standards (ESRS), such as exemptions for restating comparative information and phased-in applications for new requirements.

The measures also include clarifying the interaction between IFRS 8 operating segments and Taxonomy materiality to provide greater legal certainty for preparers.

Additionally, the proposal considers allowing optional reporting for certain complex metrics, including CapEx Type C and Turnover related to internal consumption.

Finally, the initiative aims to establish a clearer list of data points to support the development of a digital taxonomy.

“This consultation paper is of primary interest to issuers, financial institutions, institutional investors, audit and assurance providers, but responses are also sought from any other market participants or relevant stakeholders including trade associations and industry bodies, retail investors, consultants, academics and civil society organisations,” the authority stated.

ESMA intends to use the feedback received to finalise its technical advice to the European Commission, with a final report scheduled for publication by the end of October 2026.

Contributions must be submitted via an online survey, and respondents should clearly indicate any information they wish to remain confidential.