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EU Taxonomy Simplification: New Report by Platform on Sustainable Finance

The Platform on Sustainable Finance, an advisory body to the European Commission, has published a new report outlining evidence-based recommendations to simplify EU taxonomy reporting and improve its effectiveness in fostering sustainable finance.

The report, developed after consultations with investors, banks, insurers, corporates, SMEs, auditors, and consultants, identifies key areas for improvement, focusing on simplification, data access, and regulatory coherence.

Key Recommendations:

Refining “Do No Significant Harm” (DNSH) assessment to differentiate by entity type, usage, and geography.
Introducing materiality thresholds for non-financial company KPIs and simplifying operational expenditure (OpEx) calculations.
Providing clear guidance on estimates and establishing safe harbors for financial sector reporting.
Allowing proxies and estimates for Green Asset Ratio (GAR) and Green Investment Ratio (GIR) assessments.
Developing simplified, voluntary approaches for SMEs, banks, and investors to integrate the taxonomy into disclosures.

Find out more here.

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