What is the EU Taxonomy?

The EU Taxonomy is a classification system that defines which economic activities are considered environmentally sustainable. It supports the EU Green Deal by helping companies and investors identify truly “green” activities.

Companies in scope must disclose how much of their revenue, capital expenditure (CapEx), and operating expenditure (OpEx) is aligned with the Taxonomy. This includes proving that the activity substantially contributes to environmental objectives, does no significant harm, and meets minimum social safeguards.

As of July 2025, only large companies with over 1,000 employees and €450 million turnover are required to report under the Taxonomy. Materiality thresholds now apply (e.g. 10% for turnover), and the number of required data points has been reduced.