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