EU Taxonomy

EU Taxonomy

Also known as: EU Taxonomy for sustainable activities · Taxonomy Regulation

The EU classification system that defines which economic activities count as environmentally sustainable, not an XBRL/reporting taxonomy.

What it means

The EU Taxonomy is the EU's classification system for environmentally sustainable economic activities, established by the Taxonomy Regulation (EU) 2020/852. It provides a common, science-based “dictionary” of green activities for companies, investors and policymakers. It defines six environmental objectives: climate change mitigation, climate change adaptation, water and marine resources, the circular economy, pollution prevention, and biodiversity.

When an activity is Taxonomy-aligned

Substantial contribution To at least one of the six objectives.
Do no significant harm To any of the other five (DNSH).
Minimum safeguards Human-rights and governance standards.
Screening criteria Activity-specific thresholds met.
Taxonomy-aligned Counts as environmentally sustainable.
An activity merely covered by the Taxonomy is “eligible”; meeting all four conditions makes it “aligned”. See Article 8 disclosure.

How it relates to nearby concepts

Companies in scope report against it through an Article 8 disclosure, and the figures sit alongside the CSRD sustainability statement.

Common misunderstandings

  • “Taxonomy” here means an XBRL/data taxonomy: No, it is a classification of economic activities, not a tagging dictionary like the XBRL/ESEF taxonomy.
  • Eligible means sustainable: Eligibility only means an activity is covered by the Taxonomy; alignment is what signals real environmental performance.

Sources

Last reviewed: 19 June 2026

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