EU Taxonomy

To implement the Green Deal, the EU has set up a sustainable finance framework aiming at directing investments to economic activities that contribute to the environmental transition. The EU taxonomy is a central tool to create transparency, by providing a classification system to define which economic activities are aligned to the 6 environmental goals defined in the Green Deal:

The Taxonomy Regulation entered into force on 12 July 2020. Delegated and implementing acts define the details of the technical criteria that should be met for each of the 6 environmental objectives.
For an activity to qualify as environmentally sustainable, it must meet four criteria:

If an activity meets all these criteria, it qualifies as a taxonomy-aligned activity.

The European Taxonomy regulation requires companies to communicate on the proportion of their:

• Turnover
• CapEx
• OpEx
   

That is directly linked to those environmentally sustainable activities.

This information needs to be communicated in the sustainability statement according to a defined template.
The Taxonomy is currently applicable to entities that report according to the NFRD (with a year delay in the requirements for the financial sector). Its implementation for other reporting entities will follow the same timeline as the CSRD.
A social taxonomy will be added in the future.

RSM Belgium’s experts can assist you to perform the analysis required to publish the required information. This covers: