Simplifying the EU Taxonomy – ERT response

This paper by the European Round Table for Industry (ERT) responds to the European Commission’s draft delegated act on simplifying the EU Taxonomy framework. European industry’s experience of the EU Taxonomy to date reveals that the current system is overly complex, hard to interpret, and offers limited value to its main user: investors and companies. Despite the significant time and resources companies devote to compliance, the results often go unused or misunderstood.

This ERT response to the consultation argues that only a fundamental overhaul will make the Taxonomy fit for purpose. It highlights how the framework, as it stands, places a disproportionate burden on businesses without delivering clear environmental or financial benefits. ERT supports the goal of channelling finance towards sustainable activities, but stresses that the existing system is failing to do so.

The paper offers specific recommendations. These include simplifying technical screening criteria—especially the ‘do no significant harm’ requirements—reworking reporting templates, clarifying how materiality thresholds should apply, and aligning everything more closely with current EU laws. Overall, ERT urges the Commission to go further than minor tweaks. Real change is needed to reduce reporting burdens and make sustainability data more useful and usable.

Read the full paper here.