More about the taxonomy
What is sustainable according to the taxonomy?
In order for an economic activity to be considered environmentally sustainable, it must meet the following four conditions:
- Contribute substantially to the achievement of at least one of six defined environmental objectives (see below).
- Not cause significant harm to any of the other environmental objectives.
- Meet minimum requirements for social and governance conditions.
- Comply with the technical screening criteria set by the European Commission.
Six long-term climate and environmental goals
The taxonomy relates to six long-term, European climate and environmental goals:
- Reduce and prevent greenhouse gas emissions.
- Climate adaptation.
- Sustainable use and protection of water and marine resources.
- Transition to a circular economy, waste prevention and recycling.
- Pollution prevention and control.
- Protect and restore biodiversity and ecosystems.
An activity must contribute substantially to at least one of the six environmental objectives and not have a significant negative impact on the others. In addition, the activity must meet minimum requirements for social and governance conditions.
The EU Taxonomy covers the following sectors:
- Construction: Construction, renovation, demolition of buildings, road maintenance, use of cement.
- Production: Plastic packaging, electrical and electronic equipment, pharmaceutical products.
- Energy: Renewable energy sources, energy transmission, specific activities related to nuclear energy and gas.
- Information technology: IT software and consulting, data-driven solutions.
- Forestry: The establishment, conservation, operation and restoration of forests.
- Services: Sale of spare parts and used products, promotion of reuse of products and materials, marketplaces for trading in products for reuse.
- Transport: New modes of transport by sea, air, road and track.
- Water supply and treatment: Access to water, urban wastewater, sustainable sewage systems, removal of phosphorus from wastewater.
- Emergency preparedness: nature-based solutions, emergency flood relief efforts, etc.
Who is covered by the EU Taxonomy?
Banks, insurance companies and listed companies with more than 500 employees or a balance sheet turnover of at least €20 million must report according to the rules of the taxonomy. Other companies can report if they want to.