EU Taxonomy Regulation Non-financial KPI reporting under Article 8

Article 8 of Regulation (EU) 2020/852 applies to undertakings that are required to publish non-financial information under Article 19a or 29a of the Accounting Directive. Those undertakings must include information on how and to what extent their activities are associated with environmentally sustainable economic activities.

For non-financial undertakings, Article 8 identifies three KPI families: the proportion of turnover from products or services associated with qualifying economic activities, and the proportions of capital expenditure and operating expenditure related to assets or processes associated with those activities.

Build each KPI record from the same controlled activity inventory. For every economic activity, keep the activity description, the Taxonomy objective assessed, the technical screening criteria used, the eligibility or alignment conclusion, and the financial amounts included or excluded.

The Disclosures Delegated Act is the methodology anchor. The Commission's delegated-acts page describes it as the act that specifies the content and presentation of the information to be disclosed and the methodology for the Article 8 obligation.

A useful evidence file lets a reviewer move from the public KPI back to the source rule, activity assessment, and financial data. It should show the reporting scope, the activity mapping, the objective assessed, the screening criteria and DNSH/minimum-safeguards conclusion where alignment is claimed, and the calculation source for each KPI.

Where voluntary Taxonomy information is published alongside mandatory Article 8 reporting, the Commission notice says the basis of preparation should be clear and the voluntary information should not contradict, misrepresent, or be more prominent than the mandatory information.

The most common mistake is using the phrase non-financial KPI as if it meant any sustainability metric. In Article 8 Taxonomy reporting, the non-financial undertaking KPI set is specific: turnover, CapEx, and OpEx, calculated and presented under the delegated-act methodology.

A second mistake is losing the link between the activity assessment and the financial number. If an activity contributes to more than one environmental objective, teams need a documented approach that avoids double-counting and follows the relevant Commission guidance.