EU Taxonomy Regulation Checklist

Record the legal entity, reporting boundary, business line, product or service, revenue stream, CapEx project, or OpEx category being assessed. The Taxonomy is an activity classification system, so a broad company-level sustainability statement is not enough.

Use the Commission Taxonomy hub, the EU Taxonomy Navigator or Compass, and the relevant delegated acts to identify whether the activity is covered. If the activity is not covered by technical screening criteria, do not describe it as Taxonomy-aligned; keep the conclusion limited to the eligibility assessment.

A covered activity is not automatically Taxonomy-aligned. The Regulation requires the activity to contribute substantially to one or more environmental objectives, do no significant harm to the other objectives, comply with minimum safeguards, and meet the applicable technical screening criteria.

Keep the four-part conclusion visible for every assessed activity. A single missing part should stop an alignment claim, even when the activity is eligible or strategically important.

The checklist should produce a reviewable evidence file, not just a yes-or-no table. For each activity, attach the source criterion, the measured or documented fact, the calculation owner, and the reviewer who accepted the evidence.

DNSH evidence should be objective-specific. Do not reuse a climate-mitigation calculation as proof that water, circular economy, pollution, or biodiversity conditions have also been met unless the relevant delegated-act criterion actually allows that evidence.

Minimum safeguards are not a branding statement. Article 18 refers to procedures implemented by the undertaking to align with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including ILO fundamental principles and the International Bill of Human Rights.

For checklist purposes, require evidence of the procedure, owner, scope, escalation route, and any material unresolved findings. The Platform on Sustainable Finance report is advisory rather than binding, but it is useful implementation context for human rights due diligence, bribery, taxation, and fair competition topics.

Article 8 reporting should reconcile the activity assessment with finance systems. For non-financial undertakings, the Regulation identifies turnover, capital expenditure, and operating expenditure proportions associated with environmentally sustainable activities; the Disclosures Delegated Act specifies content, presentation, and methodology.

Financial undertakings need their own KPI logic. The Disclosures Delegated Act identifies the green asset ratio as the main KPI for credit institutions and sets separate disclosure approaches for asset managers, investment firms, and insurance or reinsurance undertakings.