EU taxonomy

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EU Taxonomy – key requirements for sustainability reporting

The EU Taxonomy is a central framework within the EU’s sustainability regulations. It defines which economic activities can be classified as sustainable and forms an important part of the reporting requirements for many companies.

The EU Taxonomy applies, among others, to companies subject to CSRD, as well as financial market participants reporting on sustainable investments. In Norway, the framework has been implemented through the Sustainable Finance Act.

At Aider, we support companies in understanding and implementing the requirements of the EU Taxonomy, ensuring that reporting is both accurate and strategically valuable.

What is the EU Taxonomy?

The EU Taxonomy is a classification system that defines which economic activities are considered sustainable within the EU.

The purpose is to:

Establish a common definition of sustainable activities
Provide investors with a stronger basis for decision-making
Support the redirection of capital towards more sustainable businesses

For companies, this means reporting the share of their activities that are taxonomy-aligned or sustainable.

This is typically reported through key performance indicators such as:

Share of revenue
Share of investments (CapEx)
Share of operating expenses (OpEx)

What is required for an activity to be considered sustainable?

For an activity to be classified as sustainable under the EU Taxonomy, three main criteria must be met:
Substantial contribution to environmental objectives
The activity must make a significant contribution to at least one of the EU’s six environmental objectives, including climate mitigation and the circular economy.

Do no significant harm

The activity must not harm the other environmental objectives. This is referred to as the “Do No Significant Harm” (DNSH) principle.
Minimum safeguards
The company must comply with minimum standards related to social conditions, human rights, and good corporate governance.

What does the EU Taxonomy mean for businesses?

For many companies, the EU Taxonomy is an important part of sustainability reporting.

This means that companies must:

Identify which activities are covered by the Taxonomy
Assess activities against technical screening criteria
Document whether activities are taxonomy-aligned
Report relevant key performance indicators

For companies reporting under CSRD, Taxonomy reporting will be an integrated part of sustainability reporting.

Aider supports you with EU Taxonomy reporting

Working with the EU Taxonomy can be complex, particularly for companies approaching it for the first time.

Aider’s advisors support you throughout the entire process:

Double materiality assessment
Mapping which activities and sustainability topics are relevant to your business
Assessment of technical criteria
Reviewing your activities against the requirements of the EU Taxonomy
Reporting on indicators
Assisting with the calculation and reporting of taxonomy-related KPIs, including revenue, investments, and operating expenses

Frequently asked questions about the EU Taxonomy

- The EU Taxonomy is a classification system developed by the EU to define which economic activities can be considered sustainable.
- Companies subject to CSRD, as well as certain financial market participants, are required to report under the Taxonomy.
- The EU Taxonomy for sustainability is a framework that defines which activities contribute to the EU’s environmental objectives and can therefore be classified as sustainable.
- A taxonomy-aligned activity meets the requirements of the EU Taxonomy, including technical screening criteria, environmental objectives, and minimum safeguards.
- Companies report, among other things, the share of revenue, investments, and operating expenses that are taxonomy-aligned.

We are ready to assist

Sven Østebø

Head of Business Advisory • Oslo

sven@aider.no

+47 98 54 57 81

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Sjur Langedal

Director • Oslo

sjur.langedal@aider.no

+47 97 74 69 59

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