EU Taxonomy is a classification system that applies to companies in scope under the SFDR and CSRD (overhauls the NFRD). It aims to support sustainable investment and address greenwashing by increasing clarity on which economic activities are environmentally sustainable. Sustainable economic activities must contribute to at least 1 of 6 environmental objectives listed in the Taxonomy and do no harm to the others.

Organizations under SFDR (EU asset managers, financial advisers, and insurance providers), organizations under NFRD & CSRD (large EU companies, EU SMEs, certain non-EU companies) are affected by EU Taxonomy.

EU Taxonomy Regulation and Compliance Timeline

The Taxonomy Regulation came into force on July 12, 2020

Reporting requirements


  • Percent of turnover, revenue, and capital expenditures aligned with EU Taxonomy

Asset managers

  • Contribution to 6 taxonomy objectives:
    1. Climate change mitigation
    2. Climate change adaptation
    3. The sustainable use and protection of water and marine resources
    4. The transition to a circular economy
    5. Pollution prevention and control
    6. The protection and restoration of biodiversity and ecosystems
  • Percent of portfolio invested in activities aligned with taxonomy