EU taxonomy report
EU taxonomy report
Taxonomy-aligned activities in KPIs and additional info need to be included
After a company has determined the EU Taxonomy-aligned share of each KPI and compiled the qualitative information, the last step is to craft the final report.
All taxonomy-aligned activities in KPIs and all additional info need to be included.
The report shall be structured using the templates provided by the EU in Annex II to the Disclosures Delegated Act to report on the company’s key performance indicators (KPIs), activities, eligible activities, aligned activities, non-eligible activities, and eligible but non-aligned activities.
This also includes the proportion of transitional and enabling activities. There are three templates: one for turnover, one for CapEx, and one for OpEx.
The annual reporting period will use data for the previous financial year (i.e. reporting on 2023 data in the 2024 report).
The KPIs should be reported in the same currency as the company’s annual financial report and should contain information on the EU taxonomy and why it is relevant to the company, including whether reporting is mandatory or voluntary, or if the company is reporting as a consolidated group.
The report should include information on the methodology used to carry out the taxonomy assessment.
The EU taxonomy does not yet strictly require documentation to prove compliance with most of its criteria. However, the amount of documentation needed may vary depending on how the taxonomy assessment is used.
As of now, independent audit is not a requirement for the taxonomy assessment or report, but this is set to be introduced with the application of the Corporate Sustainability Reporting Directive (CSRD).
