Italian Sustainable Investment Forum
Opinion issued on simplified ESRS. Social Taxonomy guidelines published.
The process of simplifying the European sustainable finance regulatory framework continues, with significant developments over the past few weeks.
ESRS Review
The Platform on Sustainable Finance (PSF) has published its opinion on the revised draft European Sustainability Reporting Standards (ESRS) issued by the European Financial Reporting Advisory Group (EFRAG) at the end of 2025. The PSF specifically assessed the usability of the revised standards and their alignment with the broader regulatory framework, particularly the EU Taxonomy. Among its various recommendations, the Commission’s advisory body highlighted the need to ensure greater consistency between the ESRS and the Taxonomy, particularly through better integration of Taxonomy-related disclosures (CapEx and OpEx) within transition plan reporting, for which a voluntary template would be useful. In addition, EFRAG is encouraged to adopt more stringent disclosure requirements than international sustainability reporting standards.
Voluntary Reporting
EFRAG launched a consultation to gather feedback on the practical applicability of the future voluntary reporting standard (VSME) for large undertakings, which will fall outside the scope of the directive following the entry into force of the amendments to the Corporate Sustainability Reporting Directive (CSRD). The consultation closed on 20 April 2026. EU companies that do not qualify as SMEs were eligible to participate (i.e. companies with fewer than 1,000 employees or an annual turnover below €450 million).
Amendments to Taxonomy Delegated Acts
Following the publication of new delegated acts amending the Taxonomy Climate and Environmental Delegated Acts, the EU Commission launched a consultation on the topic. The Call for Evidence, which closed on 14 April, aimed to gather views on the revision of the Technical Screening Criteria (TSC) for several activities, including forestry and environmental protection, manufacturing, energy, transport, and construction. The proposals follow the 2025 TSC review in the context of Omnibus I and focus in particular on clarifying definitions and requirements, removing duplicative or disproportionate obligations, and introducing more explicit references to related EU legislation. Adoption of the new delegated acts is expected in June 2026, with application beginning in January 2027.
Social Taxonomy
Regarding the Taxonomy framework, the Italian Consiglio Nazionale Dottori Commercialisti ed Esperti Contabili (CNDCEC) has presented the document “Applied Social Taxonomy: Guiding Principles” to contribute to the development of a European Social Taxonomy.
The document provides a structured overview of tools for classifying and measuring the social impact of corporate policies on productivity, performance, responsiveness to people’s needs, and the creation of social value. The model is based on three pillars: decent work, adequate living standards, and inclusive communities. Unlike the environmental taxonomy, the social taxonomy combines quantitative metrics with qualitative assessments, focusing on social risk as a key determinant of economic and reputational performance. Alongside risks, the document also introduces the dimension of social opportunities, such as creating quality employment, developing skills, promoting social inclusion, and ensuring access to essential services. Furthermore, the document introduces rigorous eligibility criteria based on substantial contribution and the social Do No Significant Harm principle (DNSH), while also recognising advanced methodologies such as Social Return on Investment (SROI).
