Strategic Focus: Unpacking The EU Taxonomy
Lily Turnbull
Access this research
Access all Corporate Sustainability Leaders content with a strategic subscription or buy this single report
Need help or have a question about this report? Contact us for assistance
Executive Summary
The EU Taxonomy Regulation is a green classification system that translates the EU’s climate and environmental objectives into criteria for specific economic activities and investment purposes. Since January 2023, 11,000 firms have transitioned from taxonomy eligible reporting to the more complex taxonomy alignment reporting. This report unpacks the requirements of the EU Taxonomy and explores how firms can prepare for some of the more challenging aspects of the regulation. Crucially, it highlights the importance of sustainable taxonomies as tools that can be used by organizations of all sizes to drive sustainable strategy development, enhance competitive positioning and improve access to capital. This report can be used by executives in sustainability, operations, procurement, finance and legal functions to enhance their disclosure practices.Four Assessment Criteria To Establish Taxonomy Alignment
EU Taxonomy Regulation Will Require Heavy Lifting From Reporting Organizations
Three Ways Organizations Can Enhance Their EU Taxonomy Reporting
Figure 2. The Environmental Objectives Of The EU Taxonomy
Figure 3. Example Of Technical Screening Criteria For An Activity’s Climate Change Mitigation Contribution
Figure 4. Sustainable Taxonomies Beyond The EU
Figure 5. ESG Information Architecture Components
About the Authors
Lily Turnbull
Senior Analyst
Lily is a Senior Analyst at Verdantix, where she delivers in-depth research to help executives navigate ESG, sustainability and product innovation, and make confident decision...
Kim Knickle
Research Director
Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...
View ProfileOther related content
Most sustainability leaders aren't using AI to its full potential. Concerns about data quality, regulatory risk, and potential inaccuracies mean AI is still widely seen as a compli...
Upcoming / 31 March, 2026
Industrial firms around the world are being hammered by operational dislocations and disruptions. Labour shortages, supply chain chokepoints, fast-changing import tariffs, rapid sh...
Upcoming / 25 March, 2026
In a long-awaited statement, the European Commission has confirmed that the upcoming simplification review of the EU Deforestation Regulation (EUDR), due April 30, 2026, will not i...
09 March, 2026
The recently released Verdantix Green Quadrant: Sustainability Consulting (2026) evaluates 15 prominent sustainability consulting providers, assessing their capabilities and mark...
09 March, 2026
Just seven weeks into 2026, and European sustainable finance supervision has already delivered two important signals to the market. First, the European Central Bank has fined Cré...
23 February, 2026
Energy price volatility, grid instability and geopolitical risk are exposing how vulnerable many organisations’ energy strategies really are. Energy, procurement, operations and su...
Upcoming / 12 March, 2026