The advisory body of the European Commission (EC) – the Platform on Sustainable Finance (PSF) – has responded to a consultation on amendments to the Taxonomy Regulation. The body said it is in favour of simplifying the taxonomy’s reporting requirements in line with its own suggestions, which would reduce corporate reporting burdens by a third. It would also introduce a simplified green asset ratio, a more practical approach to ‘do no significant harm’ criteria, and measures to help SMEs access sustainable finance, said the PSF. However, the platform said it is “concerned” about the “significant reduction” in reporting scope suggested by the EC. It said that the Commission should instead focus on aligning the scope of taxonomy reporting with the original scope of the Corporate Sustainability Reporting Directive. For non-SME companies below the 1,000-employee threshold, reporting should be focused on the most essential standards, including taxonomy alignment, the PSF said.
