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How will companies have to report on the EU Taxonomy?

April 17, 2023
 min read

Companies who are required to report in accordance with the taxonomy will have to assess their business activities and determine to what extent they are aligned with the technical criteria. The share of turnover, CAPEX and OPEX associated with taxonomy-aligned business activities is considered a company’s taxonomy scores and is what owning entities (i.e., a private equity fund) will have to use when calculating their own, aggregated taxonomy scores.

As a company, the requirement is also to disclose information 'to the extent necessary for an understanding of the development, performance, position and impact of the company's activities’, according to the regulation. This means that your company’s activities are disclosed with a level of detail that breaks down, and shows specifically, where the company is achieving sustainability targets, where shortfalls may be occurring, and where potential improvements can be made.



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