EU Green Taxonomy
The EU Green Taxonomy is the EU's official classification system for what counts as an environmentally sustainable economic activity. It gives companies and investors a common, science-based language to identify, measure, and compare activities that contribute to the EU's climate and environmental objectives—while avoiding greenwashing and channelling capital toward the European Green Deal. The Taxonomy does not mandate where investors must invest. It does, however, require in-scope companies to disclose how much of their business is Taxonomy-eligible and Taxonomy-aligned—making sustainability performance transparent and financially comparable.
Overview operations, industrial activities, and planned investments, add to inventory them from EU Taxonomy listed activities and set reporting boundaries consistent with your financial consolidation. Check for technical screening criteria for each reporting eligible activity.
To qualify, an activity must; make a substantial contribution to at least one of six environmental objectives do no significant harm to the other objectives meet minimum social safeguards and to ensure fulfilment of the technical screening criteria specified in the delegated acts.
Determine eligibility vs alignment, then compile the Article 8 KPIs with clear numerators/denominators and methods. Integrate results into governance, strategy, and risk; set targets; run scenarios; link incentives and CapExplanning; and update assessments as delegated acts evolve.
For the planet and people, the combination of production, ambition, value chain and finance
Disclosures are made in the annual report's sustainability statement/section (e.g., within the CSRD/ESRS sustainability statements) not in the primary financial statements. For non-financial undertakings, companies should disclose:
KPI tables for Turnover, CapEx, OpEx showing Taxonomy-eligible and Taxonomy-aligned proportions, with reconciliation to totals.
Turnover - share of net revenue from Taxonomy-aligned products/services - a static view of today's contribution CapEx - share of capital expenditure that is aligned or part of a credible CapEx plan to become aligned - a forward looking view of transition OpEx - share of operating expenditure related to aligned activities or the CapEx plan - the enablers of ongoing performance
Methodology notes: activity mapping, boundaries, screening criteria applied, DNSH tests, minimum safeguards assessment, data sources and estimation techniques. Qualitative context: the role of credible CapEx plans, timelines to reach alignment, and governance over data and controls.
The objective is transparency and comparability: readers must be able to trace calculations, understand judgements, and see how alignment links to the business model and transition plan.
The Taxonomy links how we produce with how we finance—turning sustainability from aspiration into capital allocation. By defining what "good" looks like, it rewards credible transition plans, prioritises investments with real environmental outcomes, and safeguards people through minimum social standards. The result is practical: clearer signals for markets, better comparability for stakeholders, and a faster, fairer shift to a low-carbon, nature-positive economy
See it on your own data
A short walkthrough with someone who knows the standards — no slide deck.