Changes proposed in the European Commission’s simplification omnibus would exempt large oil and gas companies from reporting under the EU Taxonomy.

In its Delegated Act proposal, the Commission introduces a new threshold: if companies have less than 10% taxonomy-relevant activities, they would no longer be required to report. WWF’s new briefing finds that this would exempt major oil and gas companies from disclosing their Taxonomy alignment. This would create a major data gap, making it harder to assess the green performance or the transition claims of companies, just as financial institutions and investors are beginning to integrate Taxonomy data into their decision-making processes.

“Instead of addressing existing reporting challenges, these amendments risk creating additional legal uncertainty, increasing compliance costs for some firms, and failing to resolve key transparency issues. …said Vedran Kordic, EU Taxonomy coordinator at WWF European Policy Office…

The Commissioner for Financial Services, Maria Luís Albuquerque, will speak to the ECON and ENVI Committees in the European Parliament on 8 April, about the European Commission’s proposal to “simplify” the Taxonomy Delegated Acts. WWF calls on the Commission to lower the materiality threshold and calls on the Council and Parliament to maintain the initial, identical scope for the Taxonomy and the CSRD…