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MOTION FOR A RESOLUTION (C(2025)04568 - 2025/2806(DEA))

On the Commission delegated regulation of 4 July 2025 amending Commission Delegated Regulation (EU) 2021/2178 as regards the simplification of the content and presentation of information to be disclosed concerning environmentally sustainable activities and Commission Delegated Regulations (EU) 2021/2139 and (EU) 2023/2486 as regards simplification of certain technical screening criteria for determining whether economic activities cause no significant harm to environmental objectives

B-10-2025-0566

on behalf of the S&D Group · Rapporteur: Annalisa Corrado, Lara Wolters

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Parliament objects to the Commission delegated regulation of 4 July 2025 that simplifies taxonomy reporting and technical screening criteria, arguing it weakens the 'do no significant harm' principle and enables greenwashing. The regulation narrows the scope of substances of very high concern from 4,382 to 493, introduces a 10% materiality threshold, and allows financial undertakings to avoid detailed reporting until 31 December 2027. Parliament also criticizes the undefined concept of 'partial taxonomy alignment' and the inclusion of local government exposures in the green asset ratio denominator without voluntary disclosure.

Key points

  1. Objects to the Commission delegated regulation, meaning it cannot enter into force.
  2. The regulation limits the DNSH principle to SVHCs on the candidate list (493 substances), excluding CMRs with harmonised classification (847) and self-classified CMRs (3,042), narrowing from 4,382 to 493.
  3. This approach disregards intrinsic hazards, runs counter to scientific evidence, dilutes DNSH, amounts to greenwashing, and defeats the taxonomy's purpose.
  4. The regulation allows undertakings to exclude non-material activities, with non-materiality presumed if cumulative value is below 10% of key performance indicator denominators.
  5. This materiality threshold restricts Article 8(1) obligations, creates legal uncertainty, may let major polluters avoid reporting, and enables deliberate exclusion of harmful activities.
  6. Such outcomes constitute greenwashing and weaken the taxonomy's credibility as a reporting and anti-greenwashing tool.
  7. The measure introduces uncertainty and inconsistency, fostering complexity rather than simplification.
  8. The EU Platform on Sustainable Finance warned that restricted scope and materiality thresholds risk dramatically reducing reporting undertakings.
  9. Until 31 December 2027, financial undertakings may avoid detailed templates and publish a statement that they do not claim taxonomy alignment.
  10. This neutralises disclosure obligations for two years, exceeding the Commission's empowerment.
  11. The GAR denominator should exclude exposures to entities not subject to Directive (EU) 2022/2464 unless included in the numerator, to avoid inflating banks' GARs.
  12. Local government exposures should be in the GAR denominator only if also in the numerator, based on voluntary disclosure, as they lack resources and are not obliged to report.

Who is affected

  • Financial and non-financial undertakings subject to taxonomy reporting under Regulation (EU) 2020/852.
  • Financial undertakings, including banks, affected by GAR calculation rules and temporary reporting relief.
  • Local and regional governments, whose exposures are treated in GAR calculations.

Figures and deadlines

  • 493 substances on the candidate list
  • 847 CMRs with harmonised classification
  • 3,042 self-classified CMRs
  • 4,382 substances currently covered
  • 10 % of key performance indicator denominators
  • 31 December 2027

Legal basis: Article 290 of the Treaty on the Functioning of the European Union