EBA Proposes Simplification of ESG Reporting Requirements
Financial firms may see reduced reporting burdens under new EBA advice for the Disclosures Delegated Act.
Updated on Oct. 29, 2026 in Financial Services
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The European Banking Authority (EBA) has submitted technical recommendations to the European Commission to streamline ESG disclosure requirements under the Disclosures Delegated Act. The proposal aims to reduce reporting complexity for credit institutions and investment firms by removing specific KPIs and simplifying group-level reporting.
Why it matters
The EBA seeks to enhance the usability of financial information by removing burdensome KPIs, potentially lowering compliance costs for firms operating within the European Union. These changes are intended to resolve long-standing reporting inefficiencies identified following the initial request from the Commission in March 2026.
The EBA advice targets five specific areas of regulatory focus to streamline disclosure requirements. While these changes aim to simplify the current framework for financial undertakings, the final timeline for implementation remains unknown pending the European Commission review.
The players
European Banking Authority
An EU regulatory agency that sets prudential and conduct standards for the European banking sector.
European Commission
The executive branch of the European Union responsible for proposing legislation and implementing regulatory policy.
The details
The EBA advice proposes removing the Fees and Commission's KPI and the Trading Book KPI to eliminate redundant data collection. It also excludes the operational expenditure KPI from financial undertakings' calculations and introduces a simplified approach for investment firms' other services KPIs. Additionally, the proposal suggests allowing group disclosures to rely on parent undertaking KPIs, which would significantly reduce administrative reporting steps for entities with complex organizational structures.
Timeline
March 2026: The European Commission requested technical advice on the Disclosures Delegated Act.
October 29, 2026: The EBA published its final response to the European Commission.
Market Landscape
This submission marks the next step in the European Commission's ongoing review of the Disclosures Delegated Act. It follows a pattern of regulatory refinement aimed at balancing sustainability reporting standards with practical implementation for European financial firms.
Operators in the European financial sector should track these potential changes to simplify their internal ESG reporting workflows. Firms currently preparing for long-term compliance cycles should note that these amendments aim to reduce KPI calculation burdens, though no official effective date is yet set.
The takeaway
The EBA's proposed changes signal a shift toward more pragmatic disclosure requirements for financial firms. Operators should monitor the upcoming European Commission review process to determine if these simplifications allow for the reduction of existing internal ESG reporting resources.
Further reading
For additional updates on regulatory shifts, visit the Financial Services section.
Source note: This article includes information reported by European Banking Authority.
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