Who Must Report?
The EU Taxonomy reporting scope follows the CSRD perimeter for non-financial companies and adds sector-specific rules for financial institutions.
Core mandatory-scope thresholds
Under Directive (EU) 2026/470, an undertaking generally falls within mandatory CSRD — and therefore Article 8 Taxonomy — scope only when it exceeds both thresholds, subject to national implementation and group rules.
Employees
Average number of employees during the financial year
Net turnover
Annual net turnover
Directive (EU) 2026/470 entered into force on 18 March 2026. Member States must transpose the relevant changes by 19 March 2027, so national law and any transitional exemptions must be checked.
The three main KPIs
In-scope non-financial companies report taxonomy-eligible and taxonomy-aligned turnover, CAPEX, and OPEX. Regulation (EU) 2026/73 permits a 10% materiality simplification for qualifying activities under each KPI, subject to its detailed rules.
Turnover
Share of net turnover associated with taxonomy-relevant activities.
CAPEX
Share of capital expenditure linked to taxonomy-relevant assets, projects, or transition plans.
OPEX
Share of eligible operating expenditure linked to taxonomy-relevant activity.
Reporting by entity type
Different categories of undertakings face different disclosure obligations under the Taxonomy.
Non-financial undertakings in CSRD scope
CSRDUndertakings in mandatory CSRD scope disclose turnover, CAPEX, and OPEX with eligibility and alignment breakdowns.
- Per-objective eligibility and alignment reporting
- Standardized KPI templates
- Separate treatment of enabling and transitional activities
Banks and credit institutions
CRRBanks report the Green Asset Ratio and related taxonomy portfolio indicators.
- GAR based on banking-book exposures
- Objective and sector breakdowns
- Treatment rules for excluded exposures
Insurers
Solvency IIInsurance undertakings report taxonomy alignment for investment and certain underwriting exposures.
- Investment alignment disclosures
- Climate-relevant underwriting indicators
Asset managers
SFDRAsset managers disclose taxonomy alignment at entity and product level.
- Product-level alignment for relevant funds
- Linkage to SFDR reporting
Implementation timetable
EU-level changes apply partly through directly applicable regulations and partly through directives that require national transposition.
Large public-interest entities previously in scope of the NFRD
Directive (EU) 2026/470 enters into force and sets the new general CSRD scope for undertakings exceeding both 1,000 employees and EUR 450M net turnover
Member States may exempt undertakings that do not exceed both new thresholds, subject to national law
Member States must bring the relevant national implementing measures into force
Eligibility versus alignment
Eligibility asks whether the activity is covered by the delegated acts. Alignment asks whether the activity also meets the four substantive conditions.
Reporting both numbers helps users distinguish scope from real environmental performance.
Explore the full framework
Understand the regulation, the objectives, and the technical criteria that sit behind the reporting obligation.