The European Commission has today issued guidance to help stakeholders prepare for the simplified disclosure rules under the EU Taxonomy for sustainable economic activities, which will apply from January 2026.
The simplified framework, introduced through the Taxonomy Omnibus Delegated Act adopted in July 2025, significantly reduces reporting burdens for EU businesses. For example, companies no longer need to assess non-material activities under the EU Taxonomy, key performance indicators for financial institutions are simplified, and the number of data points in reporting templates is cut by 89% for financial undertakings and 66% for non-financial undertakings.
The guidance, which takes the form of a draft set of replies to frequently asked questions (FAQs), provide early and practical guidance on the implementation and legal interpretation of the simplified disclosure rules ahead of their entry into application. It will help stakeholders to prepare their first annual Taxonomy reporting under the simplified rules, due to be published in 2026 for the financial year 2025.
Formal adoption of the FAQ in all EU languages is expected in the first quarter of 2026, following the publication of the Omnibus Delegated Act in the Official Journal.