EU Taxonomy Compliance Software | Alignment Assessment & KPI Disclosure Automation | Certivo - Certivo
EU Taxonomy for Sustainable Activities Compliance
Climate Disclosure & Sustainability Laws
EU Taxonomy
Your Activities Are Either Taxonomy-Aligned or They're Not. Can You Prove It Across Six Environmental Objectives?
EU Taxonomy compliance requires activity-level assessment against technical screening criteria, Do No Significant Harm validation across all six environmental objectives, and minimum safeguards verification—with auditable KPI disclosures on turnover, CapEx, and OpEx. The Commission's March 2026 draft revisions are rewriting the screening criteria. Your supply chain data must keep pace. Certivo automates EU Taxonomy evidence collection from supplier environmental data to audit-ready alignment disclosures.
Key Information
- 6 Environmental objectives with activity-level screening criteria
- 3 KPIs: Turnover, CapEx, and OpEx alignment disclosures required
- Q2 2026: Revised technical screening criteria expected for adoption
Regulation Overview
- Jurisdiction: European Union / European Economic Area
- Regulatory Body: European Commission (enforcement via national competent authorities under CSRD)
- Regulation Number: Regulation (EU) 2020/852
- Effective Date: July 12, 2020 (disclosure obligations phased from January 2022)
- Official Source: EU Taxonomy Official Source
- Key Threshold: Activity-level alignment against technical screening criteria per delegated act
What is the EU Taxonomy?
The EU Taxonomy is the cornerstone classification system of the EU's sustainable finance framework. It defines science-based criteria for determining whether economic activities qualify as environmentally sustainable—replacing subjective claims with measurable, auditable thresholds. For compliance and supply chain teams, the EU Taxonomy regulation requires companies to assess every in-scope economic activity against technical screening criteria (TSC) for substantial contribution, verify Do No Significant Harm (DNSH) across the remaining five environmental objectives, and confirm minimum social safeguards. Disclosures must report the proportion of turnover, CapEx, and OpEx that is Taxonomy-eligible and Taxonomy-aligned. EU Taxonomy compliance demands granular environmental evidence from across operations and the supply chain—emissions data, energy performance certificates, lifecycle assessments, water usage metrics, and waste management documentation.
Key Components / Sub-Frameworks
- Obligation: Defines substantial contribution thresholds and DNSH for climate objectives
- Climate Delegated Act (CDA): Technical screening criteria for climate mitigation and adaptation
- Obligation: Defines TSC for four non-climate environmental objectives
- Environmental Delegated Act (EDA): Criteria for water, circular economy, pollution, biodiversity objectives
- Obligation: Specifies turnover, CapEx, OpEx disclosure methodology and templates
- Disclosures Delegated Act: Article 8 reporting requirements for KPIs
- Obligation: Activity must not significantly harm any of the other five objectives
- Do No Significant Harm (DNSH): Cross-objective harm assessment
- Obligation: Compliance with OECD Guidelines, UN Guiding Principles, ILO core standards
- Minimum Safeguards: Social and governance baseline
- Obligation: Simplified DNSH criteria, materiality thresholds, streamlined templates
- Omnibus I Simplification: Delegated Regulation (EU) 2026/73
Key Compliance Requirements
Who Must Comply
- Large public-interest entities already reporting under CSRD (Wave 1—reporting since 2025)
- All large EU companies meeting CSRD size thresholds (Wave 2—reporting since 2026)
- Listed SMEs and other in-scope undertakings (Wave 3—reporting from 2027, opt-out until 2028)
- Financial market participants disclosing under SFDR (Green Asset Ratio, product-level alignment)
- Non-EU companies with €150M+ EU net turnover (reporting from 2029)
- Any company voluntarily disclosing Taxonomy alignment to investors or customers
Key Thresholds
- Activity-level TSC: Specific technical screening criteria per economic activity per delegated act
- 10% materiality: Activities below 10% of turnover, CapEx, or OpEx may be exempt from alignment assessment (Omnibus I)
- 6 environmental objectives: Substantial contribution to at least one; DNSH across all remaining five
- Minimum safeguards: Compliance with OECD Guidelines, UNGPs, and ILO core standards required
Core Obligations
- Eligibility Assessment: Determine which economic activities are covered by EU Taxonomy delegated acts.
- DEADLINE: Each financial year
- Alignment Assessment: Evaluate activities against TSC, DNSH, and minimum safeguards.
- DEADLINE: Each financial year
- KPI Disclosure: Report proportion of Taxonomy-aligned turnover, CapEx, and OpEx.
- DEADLINE: Within CSRD sustainability report
- DNSH Verification: Demonstrate no significant harm to remaining environmental objectives.
- DEADLINE: Documented per activity
- Minimum Safeguards: Verify compliance with human rights, anti-corruption, and labor standards.
- DEADLINE: Ongoing, documented annually
EU Taxonomy Specific Pain Points
The Six-Objective Assessment Maze
Each economic activity must be assessed against technical screening criteria for substantial contribution to one objective—then validated for DNSH across the other five. Your company operates across 40 activities spanning manufacturing, transport, and construction. Each requires distinct evidence types: emissions data, energy certificates, water metrics, waste audits, biodiversity assessments. The data lives across 200 suppliers and 15 internal systems.
The Criteria Revision Cycle
The Commission revised DNSH criteria via Omnibus I in January 2026. Draft TSC amendments were published in March 2026. Each revision can reclassify activities from aligned to non-aligned—or vice versa. Without continuous regulatory intelligence and horizon scanning, your disclosures reflect last year's criteria, not this year's obligations.
The Supply Chain Evidence Gap
Taxonomy alignment requires evidence your own operations rarely hold. Energy performance certificates from building suppliers. Lifecycle GHG calculations from component manufacturers. Circular economy metrics from material vendors. Without centralized supplier self-service portals collecting this data systematically, your alignment assessment relies on estimates and assumptions that auditors will challenge.
The KPI Calculation Burden
Turnover, CapEx, and OpEx must each be broken down by Taxonomy-eligible and Taxonomy-aligned activities—then mapped to the specific environmental objective. For diversified companies, this means hundreds of line items cross-referenced against technical screening criteria, DNSH evidence, and safeguards documentation. Manual spreadsheet tracking at this scale produces audit findings, not audit readiness.
Certivo in Action
Certivo Workflow
GET EVIDENCE IN: Collect Environmental Performance Data from Every Supplier—Without the Chasing
- Launch EU Taxonomy data campaigns to hundreds of suppliers with one click.
- Request emissions data, energy certificates, and environmental metrics.
MAKE SENSE OF IT: Know Instantly Which Activities Meet Technical Screening Criteria—and Which Don't
- CORA parses supplier environmental evidence, validates against current delegated act criteria.
PROVE COMPLIANCE OUT: Generate Taxonomy Disclosures and Audit Evidence in Hours, Not Months
- Produce audit-ready KPI disclosures, DNSH documentation, and investor-facing Taxonomy reports instantly from validated supplier data.
Key Statistics
- 6 Environmental objectives validated with automatic delegated act sync
- 99.2% Environmental data extraction accuracy from supplier documents
- 95% Supplier response rate with CORA-powered campaigns
Frequently Asked Questions
Which companies must disclose EU Taxonomy alignment?
Companies subject to CSRD reporting obligations must include EU Taxonomy disclosures in their sustainability reports.
What are the penalties for incorrect or missing EU Taxonomy disclosures?
EU Taxonomy enforcement operates through CSRD and national transposition.
How does Certivo automate EU Taxonomy alignment assessment?
CORA collects supplier environmental evidence and extracts quantitative metrics automatically.
What formats does Certivo accept for EU Taxonomy evidence?
Certivo accepts any format: Environmental Product Declarations, LCA reports, ISO certificates, energy performance certificates, and freeform supplier responses.
How does EU Taxonomy reporting relate to CSRD, CBAM, and other sustainability frameworks?
EU Taxonomy disclosures are a mandatory component of CSRD sustainability reports.
Ready to Automate EU Taxonomy Compliance?
See how Certivo's sustainability compliance software transforms Taxonomy alignment from manual assessment cycles to continuous audit-ready confidence.