EU Taxonomy alignment

The EU Taxonomy determines which economic activities can be considered sustainable. It has an impact on investment decisions and capital flows by favoring eco-friendly and sustainable business practices. Measures for EU Taxonomy alignment become crucial for companies and financial institutions.

Meet the compulsory reporting requirements and seize opportunities to become more attractive to investors.

No matter what the EU Taxonomy means for you: our holistic approach allows us to consider ESG, CSRD, and EU Taxonomy solutions as a whole.

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What is the EU Taxonomy?

The EU Taxonomy regulation is a classification system for the environmental sustainability of companies’ activities. It defines sustainable activities as those that make a significant contribution to the achievement of the EU’s environmental objectives. That is why the EU Taxonomy is strongly related to the EU Green Deal.

The EU Taxonomy criteria explained

The EU Taxonomy obliges companies and financial institutions to disclose taxonomy-relevant information such as turnover and investments. It defines 6 environmental objectives that are used for evaluation.

Climate change mitigation

Climate change adaptation

The sustainable use and protection of water and marine resources

The transition to a circular economy

Pollution prevention and control

The protection and restoration of biodiversity and ecosystems

Why businesses should care about the EU Taxonomy regulation

There are several reasons why the EU Taxonomy regulation could be relevant for you. On the one hand, the EU Taxonomy supports market actors in making sustainable investment decisions. Moreover, it has introduced a common language for sustainable activities. For market actors, it is important to master this language to realize their potential in the financial market. On the other hand, businesses currently covered by the Non-Financial Reporting Directive (NFRD) must provide information on to what extent their economic activities are aligned with the EU Taxonomy as part of their sustainability reporting. In the future, all companies in the scope of the CSRD have to include this information in their sustainability reporting.

Green growth pays off – the earlier you start, the better.

Our services

We help you to fulfill the regulatory requirements of the EU Taxonomy and offer additional support in increasing your positive impact. In the process, we pinpoint opportunities for your sustainability management to make your business operations more sustainable, e.g. in terms of climate action or other ESG-related (Environmental Social and Governance) topics.

Full-range EU Taxonomy support

We support you in all questions and steps for an EU Taxonomy report of your company’s activities. It covers the project set-up, an extensive analysis of activities, and the technical screening of criteria. This also includes data collection and KPI calculation as well as process documentation and reporting.

How companies can align with the EU Taxonomy: denkstatt provides support in meeting ESG criteria
denkstatt's approach to EU Taxonomy alignment

Modular EU Taxonomy services

  • EU Taxonomy workshops for your specific needs, for example, knowledge establishment or the discussion of specific technical criteria
  • Support in generating technical evidence for EU Taxonomy alignment, for example, emission calculations according to the respective standards
  • DNSH assessment support
  • Social minimum safeguards assessment support
  • Climate risk and vulnerability assessments
We support you in different stages of your processes and find a strategy that suits your company!
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FAQ

Frequently asked questions on the EU Taxonomy

The market for green investments is very dynamic and growing strongly. Companies that do not consider taxonomy alignment in their activities might therefore be less interesting for investors and banks. Moreover, several companies are obliged to report according to the EU Taxonomy.

We always strive to create a comprehensive reporting picture and therefore work towards reports that show consistent sustainability reporting.

Apart from the obvious resource-intensive generation of technical evidence,  taxonomy accounting can also be seen as an effort driver. This is because the EU Taxonomy often requires specific analysis and breakdowns of accounts. In general, the involvement of several departments requires time-intensive reconciliations. That is why many companies look for the right partner to provide optimal support in the process.

No, all companies in the reporting scope must report according to the EU Taxonomy. Also, activities that do not generate turnover are relevant and must be reported. This applies for example to real estate and the vehicle fleet.

There are several complex tasks involved in the EU Taxonomy reporting process. Automation approaches must fit tightly into your existing processes and company structure. Based on our extensive experience in sustainability reporting, we support you in finding the right automization or digitalization solution for your company.

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