--- title: "EU Taxonomy Financial KPIs and Green Asset Ratio (GAR) FAQ" canonical_url: "https://www.sorena.io/artifacts/eu/taxonomy-regulation/faq/financial-kpis-and-gar" source_url: "https://www.sorena.io/artifacts/eu/taxonomy-regulation/faq/financial-kpis-and-gar" author: "Sorena AI" description: "FAQ on EU Taxonomy Article 8 financial undertaking KPIs, credit institution Green Asset Ratio (GAR), reporting dates, exclusions, and qualitative disclosures." published_at: "2026-05-09" updated_at: "2026-05-09" keywords: - "EU Taxonomy financial KPIs" - "Green Asset Ratio" - "GAR" - "Article 8" - "Disclosures Delegated Act" - "credit institutions" - "financial undertakings" - "EU Taxonomy" - "EU Taxonomy Regulation" --- **[SORENA](https://www.sorena.io/)** - AI-Powered GRC Platform [Home](https://www.sorena.io/) | [Solutions](https://www.sorena.io/solutions) | [Artifacts](https://www.sorena.io/artifacts) | [About Us](https://www.sorena.io/about-us) | [Contact](https://www.sorena.io/contact) | [Portal](https://app.sorena.io) --- # EU Taxonomy Financial KPIs and Green Asset Ratio (GAR) FAQ FAQ on EU Taxonomy Article 8 financial undertaking KPIs, credit institution Green Asset Ratio (GAR), reporting dates, exclusions, and qualitative disclosures. *FAQ* *Taxonomy* *EU* ## EU Taxonomy Regulation Financial KPIs and Green Asset Ratio (GAR) FAQ Article 8 does not use the same KPI model for banks, asset managers, investment firms, insurers, and non-financial undertakings. Financial undertakings need the category-specific KPIs in the Disclosures Delegated Act. Use this FAQ to separate the credit institution GAR from other financial undertaking KPIs and to check timing, numerator exclusions, and required qualitative disclosures. This FAQ explains how financial undertaking KPIs work under EU Taxonomy Article 8 and Commission Delegated Regulation (EU) 2021/2178. It focuses on the Green Asset Ratio (GAR), why the non-financial turnover, CapEx, and OpEx KPIs do not transfer directly to financial activities, and what disclosures need to accompany the numbers. ## Which financial KPIs apply under EU Taxonomy Article 8? Article 8 of Regulation (EU) 2020/852 requires undertakings that must publish non-financial information under Articles 19a or 29a of Directive 2013/34/EU to disclose how and to what extent their activities are associated with environmentally sustainable economic activities. Article 8 names turnover, CapEx, and OpEx for non-financial undertakings, then requires a delegated act to specify the content, presentation, and methodology, including the specificities of financial undertakings. The Disclosures Delegated Act explains why the non-financial turnover, capital expenditure, and operating expenditure KPIs are not appropriate for lending, investment, and insurance activities. It therefore sets separate KPI frameworks for asset managers, credit institutions, investment firms, and insurance and reinsurance undertakings. - Start by classifying the reporting entity: asset manager, credit institution, investment firm, insurance or reinsurance undertaking, or non-financial undertaking. - Use Annexes III and XI for asset managers, Annexes V and XI for credit institutions, Annexes VII and XI for investment firms, and Annexes IX and XI for insurance and reinsurance undertakings. - Do not describe GAR as the universal Taxonomy KPI for every entity; in the delegated act, GAR is the main credit institution KPI and related GAR-style ratios are adapted for other financial undertaking activities. Sources for this answer: - [Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Grounds the Article 8 disclosure obligation and the delegated-act mandate for financial and non-financial undertaking methodologies. - [Commission Delegated Regulation (EU) 2021/2178 (Disclosures Delegated Act)](https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02021R2178-20240101&ref=sorena.io) - Specifies the Article 8 KPI frameworks for financial undertakings and explains why separate financial KPIs are needed. ## What does the Green Asset Ratio measure for credit institutions? For credit institutions subject to Articles 19a and 29a of Directive 2013/34/EU, the Disclosures Delegated Act identifies the Green Asset Ratio as the main KPI. It is intended to show the proportion of exposures related to Taxonomy-aligned activities compared with the credit institution's total assets. The delegated act links the GAR to the institution's main lending and investment business, including loans, advances, debt securities, and equity holdings. For credit exposures to financial undertakings, the numerator is based on counterparties' KPIs calculated under the same delegated regulation; for credit institutions as counterparties, that means using the counterparty's total GAR. - Separate credit institution GAR from non-financial undertaking turnover, CapEx, and OpEx KPIs. - Keep the denominator and numerator logic traceable to the relevant GAR template and exposure type. - For use-of-proceeds instruments, keep issuer or counterparty information showing which Taxonomy-aligned economic activity or project is financed. - Avoid double counting where the same specialised lending exposure or bond could relate to more than one environmental objective. Sources for this answer: - [Commission Delegated Regulation (EU) 2021/2178 (Disclosures Delegated Act)](https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02021R2178-20240101&ref=sorena.io) - Defines GAR for credit institutions and the exposure categories used in GAR calculations. - [Commission Notice 2022/C 385/01 on Article 8 Disclosures](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022XC1006%2801%29&ref=sorena.io) - Clarifies implementation of the Disclosures Delegated Act, including that eligible activities are not the same thing as KPI denominators. ## Which timing rules and exclusions matter most for GAR and financial KPIs? The Disclosures Delegated Act phased in reporting. Non-financial undertaking KPIs applied from 1 January 2023, while financial undertaking KPIs applied from 1 January 2024. Credit institution KPIs for the trading book and for commission and fee income for commercial services and activities other than financing apply from 1 January 2026. Some exposures are excluded from the financial undertaking KPI numerator or from both numerator and denominator. Central governments, central banks, and supranational issuers are excluded from both the numerator and denominator. Derivatives are excluded from the numerator. Exposures to undertakings not obliged to publish non-financial information under Articles 19a or 29a of Directive 2013/34/EU are excluded from the numerator. - Check the reporting year before comparing GAR data across institutions or periods. - Do not mix the 2022-2023 transitional financial undertaking disclosures with the full financial undertaking KPI regime from 2024. - Track excluded exposure classes separately so users can understand what is outside the KPI. - When an exposure is not financing a specific identified activity, use the issuer or counterparty KPI weighting approach required by the delegated act rather than treating the whole exposure as aligned. Sources for this answer: - [Commission Delegated Regulation (EU) 2021/2178 (Disclosures Delegated Act)](https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02021R2178-20240101&ref=sorena.io) - Grounds financial undertaking KPI timing, exclusions, and use of counterparty KPI weighting. - [Commission Notice C/2023/305 on the Disclosures Delegated Act](https://eur-lex.europa.eu/eli/C/2023/305/oj/eng?ref=sorena.io) - Provides official Article 8 implementation guidance for Taxonomy-eligible and Taxonomy-aligned reporting by undertakings. ## What evidence should accompany financial undertaking KPI disclosures? The financial undertaking KPI number is not enough on its own. Annex XI requires qualitative disclosures to support the quantitative KPIs and market understanding of them. Useful evidence should therefore explain what assets and activities the KPI covers, which data sources were used, what limitations exist, how Taxonomy-aligned economic activities evolved over time from the second year of implementation, and how the undertaking treats Taxonomy compliance in business strategy, product design, and engagement with clients and counterparties. - Keep a mapping from each KPI line item to the relevant annex, template, exposure type, data source, and limitation. - Record the rationale for excluding central government, central bank, supranational, derivative, and non-reporting counterparty exposures where relevant. - For credit institutions, retain qualitative support for trading portfolio alignment where quantitative trading exposure information is not required. - For public explanations, state whether a figure is turnover-based, CapEx-based, exposure-based, revenue-based, investment-based, or underwriting-related. Sources for this answer: - [Commission Delegated Regulation (EU) 2021/2178 (Disclosures Delegated Act)](https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02021R2178-20240101&ref=sorena.io) - Annex XI requires qualitative information to accompany financial undertaking quantitative KPIs. - [Commission Notice C/2023/305 on the Disclosures Delegated Act](https://eur-lex.europa.eu/eli/C/2023/305/oj/eng?ref=sorena.io) - Supports Article 8 implementation guidance on Taxonomy-eligible and Taxonomy-aligned reporting. ## Primary sources - [Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Article 8 establishes the Taxonomy disclosure obligation and mandates delegated rules for content, presentation, and methodology. - Quote: "information on how and to what extent the undertaking's activities are associated" - [Commission Delegated Regulation (EU) 2021/2178 (Disclosures Delegated Act)](https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02021R2178-20240101&ref=sorena.io) - Specifies financial undertaking KPIs, GAR methodology, timing, exclusions, templates, and qualitative disclosures. - Quote: "the green asset ratio (GAR), which shows the proportion of exposures related to Taxonomy-aligned activities" - [Commission Notice 2022/C 385/01 on Article 8 Disclosures](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022XC1006%2801%29&ref=sorena.io) - Clarifies implementation of Article 8 eligible-activity and eligible-asset reporting under the Disclosures Delegated Act. - Quote: "eligible activities do not equal to the denominator of the taxonomy alignment KPI" - [Commission Notice C/2023/305 on the Disclosures Delegated Act](https://eur-lex.europa.eu/eli/C/2023/305/oj/eng?ref=sorena.io) - Provides official interpretation and implementation guidance for Taxonomy-eligible and Taxonomy-aligned reporting. - Quote: "reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets" ## Topic Guides - [DNSH Appendix C under the EU Taxonomy: chemicals evidence FAQ](/artifacts/eu/taxonomy-regulation/faq/dnsh-appendix-c.md): Practical FAQ on EU Taxonomy DNSH Appendix C chemicals criteria, including SVHCs, CLP hazard classes, the 0.1% w/w threshold, suitable alternatives, and controlled conditions evidence. - [EU Taxonomy 2026 simplification: what should teams do?](/artifacts/eu/taxonomy-regulation/faq/2026-simplification.md): source-linked FAQ on EU Taxonomy 2026 simplification, Regulation (EU) 2026/73, Article 8 reporting, DNSH evidence, and limits on unsupported claims. - [EU Taxonomy Activity Eligibility Workflow](/artifacts/eu/taxonomy-regulation/activity-eligibility-workflow.md): Build an EU Taxonomy activity eligibility workflow that maps economic activities to delegated-act descriptions before alignment, DNSH, and Article 8 KPI reporting. - [EU Taxonomy activity evidence packs: what to retain](/artifacts/eu/taxonomy-regulation/faq/activity-evidence-packs.md): A practical FAQ on EU Taxonomy activity evidence packs: eligibility, alignment, DNSH, minimum safeguards, KPI traceability, and source-linked review records. - [EU Taxonomy Applicability Test for Eligibility and Alignment](/artifacts/eu/taxonomy-regulation/applicability-test.md): Test EU Taxonomy applicability by separating Article 8 reporting scope, Taxonomy eligibility, Taxonomy alignment, DNSH, minimum safeguards, and KPI evidence. - [EU Taxonomy Article 8 disclosure templates](/artifacts/eu/taxonomy-regulation/templates.md): source-linked EU Taxonomy templates for Article 8 reporting, covering non-financial KPIs, financial undertaking annexes, eligibility and alignment evidence, GAR inputs, and publication checks. - [EU Taxonomy Article 8 KPI disclosure workflow](/artifacts/eu/taxonomy-regulation/kpis-and-disclosure-workflow.md): source-linked workflow for EU Taxonomy Article 8 KPI disclosures, covering turnover, CapEx, OpEx, GAR dependencies, templates, contextual information, and publication checks. - [EU Taxonomy Article 8 Scope and Reporting Entities](/artifacts/eu/taxonomy-regulation/scope-and-reporting-entities.md): Determine which financial and non-financial undertakings report under EU Taxonomy Article 8, which annexes apply, and what evidence supports the reporting boundary. - [EU Taxonomy Article 8 Scope FAQ](/artifacts/eu/taxonomy-regulation/faq/article-8-scope.md): source-linked FAQ on EU Taxonomy Article 8 scope, including who reports, which KPI framework applies, and what evidence teams should retain. - [EU Taxonomy auditor evidence: what to keep for alignment review](/artifacts/eu/taxonomy-regulation/faq/auditor-evidence.md): Practical FAQ on EU Taxonomy auditor evidence: what evidence supports eligibility, alignment, DNSH, minimum safeguards, and Article 8 KPI disclosures. - [EU Taxonomy CapEx Plan Evidence Workflow](/artifacts/eu/taxonomy-regulation/capex-plan-evidence-workflow.md): Build an EU Taxonomy CapEx plan evidence workflow for Article 8 CapEx KPI reporting, management-body approval, milestones, amendments, allocation, and restatement controls. - [EU Taxonomy CapEx Plan Evidence: Article 8 checklist](/artifacts/eu/taxonomy-regulation/capex-plan-evidence.md): Build evidence for EU Taxonomy CapEx plans under Article 8, Annex I Section 1.1.2.2 and the Disclosures Delegated Act. - [EU Taxonomy CapEx Plans FAQ: Article 8 CapEx KPI](/artifacts/eu/taxonomy-regulation/faq/capex-plans.md): Practical FAQ on EU Taxonomy CapEx plans under Article 8, Annex I Section 1.1.2.2, management-body approval, timing, activity-level evidence, and KPI restatement. - [EU Taxonomy compliance guide: eligibility, alignment and Article 8 KPIs](/artifacts/eu/taxonomy-regulation/compliance.md): Practical EU Taxonomy compliance guide for mapping eligible activities, testing alignment, collecting DNSH and minimum-safeguards evidence, and preparing Article 8 disclosures. - [EU Taxonomy deadlines and Article 8 compliance calendar](/artifacts/eu/taxonomy-regulation/deadlines-and-compliance-calendar.md): source-linked EU Taxonomy calendar for Article 8 reporting phases, environmental objective application dates, delegated-act updates, and evidence review gates. - [EU Taxonomy Delegated Act Change Tracker](/artifacts/eu/taxonomy-regulation/delegated-act-change-tracker.md): Track adopted and proposed EU Taxonomy delegated-act changes by source, status, affected criteria, Article 8 disclosure impact, owner, and evidence update. - [EU Taxonomy delegated act changes: what teams should check](/artifacts/eu/taxonomy-regulation/faq/delegated-act-changes.md): FAQ on handling EU Taxonomy delegated act changes: official source checks, application dates, affected criteria, disclosures, DNSH evidence, and review records. - [EU Taxonomy Delegated Acts Tracker](/artifacts/eu/taxonomy-regulation/delegated-acts-tracker.md): Track EU Taxonomy delegated acts by legal status, objective, reporting impact, activity scope, DNSH criteria, Article 8 disclosures, and owner follow-up. - [EU Taxonomy DNSH and Minimum Safeguards evidence guide](/artifacts/eu/taxonomy-regulation/dnsh-and-minimum-safeguards.md): source-linked guide to EU Taxonomy DNSH and minimum safeguards: Article 3 alignment gates, Article 17 significant harm, Article 18 safeguards, evidence records, and KPI controls. - [EU Taxonomy DNSH Appendix C: chemicals evidence guide](/artifacts/eu/taxonomy-regulation/dnsh-appendix-c.md): source-linked guide to EU Taxonomy DNSH Appendix C chemicals checks, including SVHC thresholds, alternatives, controlled conditions, and evidence records. - [EU Taxonomy Eligibility vs Alignment](/artifacts/eu/taxonomy-regulation/taxonomy-eligibility-vs-alignment.md): Compare EU Taxonomy eligibility and alignment under Article 8: what each term means, what evidence is needed, which KPIs are affected, and why eligibility is not proof of sustainability. - [EU Taxonomy Eligibility vs Alignment Explained](/artifacts/eu/taxonomy-regulation/taxonomy-eligibility-vs-alignment-explained.md): Explain EU Taxonomy eligibility and alignment under Article 8, the Disclosures Delegated Act, Article 3, technical screening criteria, DNSH, and safeguards. - [EU Taxonomy eligibility vs alignment: what is the difference?](/artifacts/eu/taxonomy-regulation/faq/eligibility-vs-alignment.md): Eligibility means an activity is covered by Taxonomy delegated acts; alignment means it also meets Article 3 conditions, technical screening criteria, DNSH, and minimum safeguards. - [EU Taxonomy FAQ: eligibility, alignment, DNSH, safeguards, and Article 8](/artifacts/eu/taxonomy-regulation/faq.md): EU Taxonomy FAQ hub for eligibility, alignment, technical screening criteria, DNSH, minimum safeguards, Article 8 KPIs, delegated acts, and evidence records. - [EU Taxonomy GAR and financial undertaking KPIs](/artifacts/eu/taxonomy-regulation/gar-and-financial-undertaking-kpis.md): source-linked guide to EU Taxonomy Article 8 financial undertaking KPIs, including GAR, asset manager KPIs, investment firm KPIs, insurance KPIs, exclusions, and reporting evidence. - [EU Taxonomy GAR KPI workflow for credit institutions](/artifacts/eu/taxonomy-regulation/gar-kpi-workflow.md): source-linked workflow for preparing EU Taxonomy Green Asset Ratio (GAR) KPI disclosures under Article 8 and the Disclosures Delegated Act. - [EU Taxonomy minimum safeguards FAQ: Article 18 evidence](/artifacts/eu/taxonomy-regulation/faq/minimum-safeguards.md): FAQ on EU Taxonomy minimum safeguards under Article 18: who must comply, which OECD, UNGP, ILO and human-rights evidence to keep, and common reporting mistakes. - [EU Taxonomy Minimum Safeguards: Article 18 and evidence](/artifacts/eu/taxonomy-regulation/minimum-safeguards.md): Understand how Article 18 minimum safeguards fit into EU Taxonomy alignment, which international standards they reference, and what evidence supports the assessment. - [EU Taxonomy non-financial KPIs: turnover, CapEx and OpEx](/artifacts/eu/taxonomy-regulation/faq/non-financial-kpis.md): Article 8 FAQ for non-financial undertakings reporting EU Taxonomy turnover, CapEx and OpEx KPIs, with evidence and source checks. - [EU Taxonomy Penalties and Fines: Article 22 Disclosure Risk](/artifacts/eu/taxonomy-regulation/penalties-and-fines.md): Understand where EU Taxonomy penalty exposure starts: Article 22 measures and penalties for Articles 5, 6, and 7 financial product disclosures, with practical evidence controls. - [EU Taxonomy Regulation Checklist for Eligibility and Alignment](/artifacts/eu/taxonomy-regulation/checklist.md): A source-linked EU Taxonomy checklist for mapping eligible activities, testing alignment, documenting DNSH and minimum safeguards, and preparing Article 8 KPI disclosures. - [EU Taxonomy Regulation requirements: eligibility, alignment, KPIs](/artifacts/eu/taxonomy-regulation/requirements.md): Understand the core EU Taxonomy requirements: Article 3 alignment tests, eligible activities, DNSH, minimum safeguards, Article 8 KPIs, and evidence to keep. - [EU Taxonomy screening criteria and documentation guide](/artifacts/eu/taxonomy-regulation/screening-criteria-and-documentation.md): How to document EU Taxonomy eligibility, alignment, technical screening criteria, DNSH, minimum safeguards, and Article 8 KPI disclosures without overstating the evidence. - [EU Taxonomy Six Environmental Objectives | Article 9 FAQ](/artifacts/eu/taxonomy-regulation/faq/six-environmental-objectives.md): Plain-English FAQ on the six EU Taxonomy environmental objectives in Article 9 and how teams should map activities, DNSH checks, safeguards, and evidence. - [EU Taxonomy vs CSRD: Article 8 Reporting Comparison](/artifacts/eu/taxonomy-regulation/taxonomy-vs-csrd.md): Compare EU Taxonomy Article 8 disclosures with CSRD sustainability reporting scope, evidence, KPIs, assurance, and reuse limits using official EU Taxonomy sources. - [EU Taxonomy vs SFDR: Scope, KPIs, and Evidence](/artifacts/eu/taxonomy-regulation/taxonomy-vs-sfdr.md): Compare the EU Taxonomy and the SFDR link points that appear in Taxonomy materials: activity classification, Article 8 KPIs, product disclosures, data reuse, and evidence limits. *Recommended next step* *Placement: after evidence section* ## Turn EU Taxonomy guidance into an evidence workflow Use this EU Taxonomy guide to connect source-linked decisions, owners, and evidence records before teams publish, report, ship, or change controls. - [Open Research Copilot](/solutions/research-copilot.md): Answer EU Taxonomy implementation questions with cited source material. - [Discuss EU Taxonomy implementation](/contact.md): Review scope, source evidence, and next implementation steps with Sorena. --- [Privacy Policy](https://www.sorena.io/privacy) | [Terms of Use](https://www.sorena.io/terms-of-use) | [DMCA](https://www.sorena.io/dmca) | [About Us](https://www.sorena.io/about-us) (c) 2026 Sorena AB (559573-7338). All rights reserved. Source: https://www.sorena.io/artifacts/eu/taxonomy-regulation/faq/financial-kpis-and-gar