EU classification system for environmentally sustainable economic activities.
“The EU Taxonomy stands as the gold standard for sustainability classification globally.”
Synopsis
The EU Taxonomy Regulation is a cornerstone of the European Union’s sustainable finance agenda, introduced as part of the European Green Deal and the EU’s broader strategy to achieve climate neutrality by 2050. The source of this law is the need to create a unified, science-based framework that defines what constitutes a “sustainable” economic activity.
The primary purpose of the EU Taxonomy is to provide a clear and consistent classification system for environmentally sustainable economic activities. It establishes criteria for determining whether an activity significantly contributes to one of six environmental objectives—such as climate change mitigation, climate change adaptation, and biodiversity protection—without significantly harming any other objective. By setting these standards, the Taxonomy aims to channel private investment into activities that support the EU’s environmental goals, thereby accelerating the transition to a low-carbon, resilient economy.
Obligations
Our EU Taxonomy Regulation (EUTR) Obligations analysis shows you a complete overview of all obligations demanded by this regulation, accompanied by the responsible party that carries the obligation. Furthermore, we identified additional levels of detail on the responsible parties as well as a topical classification of each obligation which helps you group tasks for dedicated teams of experts.
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Obligations defined
EU Taxonomy Regulation Quickscan: Assess Your Alignment
Use this quickscan to evaluate your organisation’s alignment with the EU Taxonomy Regulation. This tool provides a high-level overview to identify compliance gaps and areas requiring improvement.
1. Applicability: Does the EU Taxonomy Regulation apply to your organisation?
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- Confirm if EU TR applies to your organisation, identify the reporting period and identify the associated obligations.
- Determine if your company is subject to non-financial reporting requirements (e.g., under CSRD or NFRD).
- Identify if your activities fall under the Taxonomy’s defined sectors.
2. Governance: Have you established governance structures for taxonomy alignment?
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- Assign responsibility for taxonomy compliance to senior leadership.
- Ensure alignment processes are embedded within corporate governance frameworks.
3. Eligible Activities: Have you identified taxonomy-eligible economic activities?
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- Map your organisation’s activities to the Taxonomy’s technical screening criteria.
- Determine if these activities contribute to one or more of the six environmental objectives.
4. Technical Screening Criteria: Do your activities meet the technical screening criteria?
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- Assess compliance with performance thresholds and sector-specific requirements.
- Identify gaps and take action to align activities where feasible.
5. Do No Significant Harm (DNSH): Do your activities avoid significant harm to other environmental objectives?
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- Evaluate operations against DNSH criteria for all six environmental objectives.
6. Minimum Safeguards: Have you implemented the required minimum safeguards?
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- Ensure adherence to OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.
7. Reporting: Are you meeting taxonomy disclosure requirements?
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- Disclose the proportion of turnover, CAPEX, and OPEX aligned with the Taxonomy.
- Integrate disclosures into annual reports or sustainability statements.
8. Data Management: Do you have robust systems for taxonomy data management?
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- Establish processes to collect, verify, and maintain data on taxonomy alignment.
- Ensure transparency and traceability of reported metrics.
9. Stakeholder Engagement: Are you engaging with stakeholders effectively?
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- Communicate taxonomy-related strategies and results to investors, clients, and regulators.
- Foster transparency to build trust and credibility.
10. Continuous Improvement: Do you have a plan for continuous alignment improvement?
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- Monitor regulatory updates and refine processes accordingly.
- Participate in industry collaborations to stay ahead of best practices.
Results
- Evaluate your readiness: Score your alignment for each section (e.g., 1-5).
- Identify gaps: Highlight key areas needing focus and create an action plan.
This quickscan provides a foundational assessment. For more detailed guidance and tailored support, explore our EU Taxonomy Regulation Obligation Report and advisory services.
