The EU Taxonomy Regulation defines which economic activities are environmentally sustainable. It underpins 's environmental disclosures, 's Article 8/9 product categorization, and the EU Green Bond Standard.
This guide covers the six environmental objectives, the difference between eligibility and alignment, and the mandatory KPIs reporters disclose.
Six environmental objectives
Climate change mitigation. Climate change adaptation. Sustainable use and protection of water and marine resources. Transition to a . Pollution prevention and control. Protection and restoration of and ecosystems.
Eligibility vs. alignment
An activity is eligible if it is listed in the Taxonomy delegated acts (~200 activities across sectors). It is aligned if it also (a) makes a substantial contribution to at least one objective, (b) does no significant harm (DNSH) to the others, and (c) meets minimum social safeguards.
Interactive tool
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CSRD & VSME applicability checker
Answer four questions to see which sustainability reporting regime applies to your company and when it kicks in.
Result
In scope
VSME (voluntary standard for SMEs)
Not in scope of CSRD, but VSME is the recommended framework for value-chain requests.
Applicability is our best estimate based on published EU thresholds; consult your auditor for a formal determination.
Mandatory KPIs
Non-financial undertakings disclose Taxonomy-alignment KPIs for turnover, capex, and opex. Financial undertakings disclose the Green Asset Ratio (GAR) or equivalent product-level ratios. Numbers are subject to assurance.
FAQ
Frequently asked questions
Does the Taxonomy apply to SMEs?
Not directly. SMEs receive Taxonomy questions from banks and CSRD-scoped customers via cascade.
What's the Green Asset Ratio?
For banks: the share of exposures financing Taxonomy-aligned activities. Reported since 2024.
What are 'social safeguards'?
Alignment with OECD Guidelines and UN Guiding Principles on Business and Human Rights.
Automate EU Taxonomy KPIs alongside your CSRD data
Vuneli tags capex and opex against Taxonomy activities, applies DNSH checks, and outputs the ratios auditors expect.
