The Taxonomy applies, to companies subject to the obligation to publish non-financial information in accordance with Article 19a or Article 29a of the Consolidated Directive 2013/34/EU.
It thus concerns public interest entities within the meaning of Directive 2013/34/EU, provided that their average number of employees over the financial year is greater than 500, and that their balance sheet total is greater than €20 million or their turnover is greater than €40 million at the closing date.
The public interest entities concerned, which are within the scope of this directive, are therefore, as long as they are organized according to one of the legal forms of companies listed in Annex I or, in certain circumstances, in Annex II of Directive 2013/34/EU:
- companies whose securities are admitted to trading on a European regulated market;
- credit institutions as defined in Article 4(1) of Regulation (EU) 575/2013;
- insuranceundertakings within the meaning of Article 2(1) of Directive 91/674/EEC.
It also concerns parent undertakings of large groups, where they are themselves public interest entities within the meaning of Directive 2013/34/EU and exceed these thresholds.1
This scope will be expanded with the implementation of the CSRD between 2024 and 2026 to include an additional 38,000 companies in Europe (in particular companies with more than 250 employees or €40 million in revenues).
Companies that are not subject to a reporting obligation may publish on a voluntary basis. Given the "growing expectations of investors" 2 in terms of ESG reporting, it is clear that companies that voluntarily publish their Taxonomy reporting will be able to promote this differentiating good practice to their investors and partners.
If you are concerned by the regulatory obligation or are committed in a voluntary approach, here are several recommendations to prepare you for its progressive implementation
To be eligible, the company must identify its activities from the list of around 80 activities. These activities, themselves listed in 13 macro-sectors, represent 90% of GHG emissions in the Union.
- Identify among your economic activities those that are listed by the European taxonomy,
- Understand and master the methods for calculating indicators and the technical criteria for alignment;
- Adapt, if necessary, the collection or production of data, allowing the calculation of sustainability indicators;
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Actors must calculate and publish the share that aligned activities represent in its overall activity, illustrating its degree of alignment with the EU transition path.
- For non-financial actors, this is the percentage of revenue, CapEx and OpEx derived from aligned activities
- For financial actors, it is, in simplified terms, the "green asset ratio". For more details, please refer to the specific breakdowns by type of player.
Sources Taxonomy Regulation: Regulation (EU) 2020/852 of the European Parliament and the Council of 18 June 2020
Disclaimer: this page is a proposal for a synthesis and popularization of the texts, these texts are evolving and complex, this synthesis is by definition incomplete, and may be obsolete due to regulatory changes. It is necessary to always refer to the official texts available on ec.europa.eu. Photo by Appolinary Kalashnikova on Unplash.