The EU Taxonomy Regulation entered into force on the 12th of July 2020. With this standardised classification system for assessing the ecological (and in future also social) sustainability of an economic activity, the EU is establishing conditions for aligning the economy in Europe towards climate neutrality and resource efficiency. In doing so, the EU taxonomy aims to create more transparency, harmonise the understanding of sustainability and prevent "greenwashing". So far, the regulation focuses on the following six environmental goals:
The first companies must report according to the EU Taxonomy Regulation if they subject to the Non-Financial Reporting Directive (NFRD). As of the 2025 financial year, large companies will also be obliged to report, regardless of their capital market orientation. This is because those who are required to report according to the Corporate Sustainability Reporting Directive (CSRD) are also required to report according to Art. 8 of the EU Taxonomy Regulation. Starting in the 2025 financial year, companies that fulfil two of the following three criteria have to report:
>250 employees on an annual average
>40 million euros net turnover
>20 million euros balance sheet total
In order to be able to report according to the EU Taxonomy Regulation, a three-step process needs to be completed, consisting of the following steps: Taxonomy eligibility assessment, taxonomy alignment assessment and the subsequent reporting. As part of the taxonomy alignment assessment, in addition to reviewing individual economic activities that you carry out as a company for third parties or also for yourself, you must also assess your company in terms of compliance with the so-called minimum safeguards in social and governance aspects according to Art. 18 of the EU Taxonomy Regulation. The process leading up to reporting is thus very extensive and includes various requirements that must be taken into account.
In order to be able to fulfil the requirements of the reporting obligation according to the EU Taxonomy Regulation, comprehensive preparations are necessary. Many questions emerge for companies: What requirements does the EU impose on us as a company? What are the differences between taxonomy eligibility and taxonomy alignment? What must be fulfilled to be able to demonstrate taxonomy alignment? What do we have to report afterwards? And above all: What are the specific steps that I have to take as a company and when do I have to start at the latest?
For our clients and partners, we therefore organised a webinar in which we bridged the gap between theory and the practical application and explained how you can approach reporting in accordance with the EU Taxonomy Regulation in your company.
Would you like to find out how you can successfully master the EU taxonomy? Feel free to ask for the presentation as well as the recording of our EU taxonomy webinar free of charge via e-mail (German only).
You will also find a short summary on this in our "Focal Point" of the 09th of August 2023.
Do you have questions or need support regarding the EU taxonomy and the accompanying preparations?
Do not hesitate to contact us if you have questions regarding the EU taxonomy or need support in preparing for the new reporting obligation, assessing the taxonomy eligibility and taxonomy alignment, setting up the necessary data collection in your company and/or the subsequent reporting. We are glad to support you.
IR.on AG
Anna-Lena Mayer
Mittelstr. 12-14 (House A)
50672 Cologne
+49 (0) 221 91 40 97 6
esg(at)ir-on.com
