TaxonomyArticle 8 scopeEU

EU Taxonomy Article 8 Scope and reporting entities

This page helps classify the reporting entity before choosing EU Taxonomy KPIs, templates, or evidence owners.

The scope test starts with of Regulation (EU) 2020/852 and the Disclosures Delegated Act, not with a generic sustainability-reporting label.

Author
Sorena AI
Published
May 9, 2026
Updated
Jul 24, 2026
Overview

EU Taxonomy reporting starts with the undertaking's obligation to publish sustainability information under Article 19a or 29a of Directive 2013/34/EU. Commission Delegated Regulation (EU) 2021/2178 then assigns the KPI method and templates for non-financial undertakings, asset managers, credit institutions, investment firms, and insurance or reinsurance undertakings. Scope, consolidation, and any 2026 simplification option must be settled before activity mapping begins.

Section 1

Start with the Article 8 reporting trigger

The first question is whether the undertaking must publish sustainability information under Article 19a or Article 29a of Directive 2013/34/EU for the reporting year. of Regulation (EU) 2020/852 attaches the Taxonomy disclosure obligation to that reporting population. Determine that Accounting Directive status under the rules applicable to the undertaking; the Taxonomy Regulation does not create a separate size test.

For an in-scope undertaking, the disclosure must explain how and to what extent its activities are associated with environmentally sustainable economic activities. The delegated act then defines the content, presentation, and methodology for the specific undertaking type.

  • Record whether the assessment is for an individual non-financial statement or a consolidated non-financial statement.
  • Keep the Article 19a or Article 29a basis in the scope memo; it is the legal gateway for reporting.
  • Do not treat voluntary Taxonomy information as mandatory disclosure unless the entity is actually in that reporting population.
Section 2

Classify the undertaking before choosing KPIs

The delegated act uses different disclosure routes for different reporting entities. A non-financial undertaking reports the information specified in Annex I and presents it using Annex II templates. Financial undertakings follow entity-specific annexes instead.

The distinction matters because turnover, CapEx, and OpEx are the statutory KPIs for non-financial undertakings, while financial undertakings use KPIs designed for financing, investment, asset-management, investment-service, and insurance activities.

  • Non-financial undertaking: disclose information under Annex I and Annex II.
  • Asset manager: use Annexes III and XI, presented through Annex IV.
  • Credit institution: use Annexes V and XI, presented through Annex VI; the green asset ratio () is the central banking KPI.
  • Investment firm: use Annexes VII and XI, presented through Annex VIII.
  • Insurance or reinsurance undertaking: use Annexes IX and XI, presented through Annex X.
Section 3

Set the consolidation boundary before collecting data

An undertaking reporting under Article 19a prepares Taxonomy information for its individual reporting boundary. A parent reporting under Article 29a includes the group subsidiaries in consolidated Taxonomy disclosures, including subsidiaries that use a group-reporting exemption or are not individually subject to Articles 19a or 29a.

Mixed groups need more than a single parent label. Current Commission guidance says a reporting parent with financial and non-financial business segments should report the relevant consolidated KPIs for each financial segment and consolidated turnover and CapEx KPIs for non-financial activities, using the prescribed weighting approach. Record the prudential consolidation used for regulated financial activities and the Accounting Directive group boundary used for consolidated sustainability reporting.

  • Document the parent entity and whether the report is individual or consolidated.
  • Identify mixed financial and non-financial lines before assigning templates.
  • Reconcile the Taxonomy boundary to the Accounting Directive group boundary and document any prudential consolidation used for financial business segments.
  • Keep voluntary supplemental disclosures separate from mandatory disclosures and explain their basis.
Section 4

Separate scope from eligibility and alignment

Being in scope does not mean that an activity is Taxonomy-eligible or Taxonomy-aligned. The delegated act defines a Taxonomy-eligible economic activity as one described in the delegated acts adopted under the environmental-objective provisions of Regulation (EU) 2020/852, regardless of whether that activity meets the technical screening criteria.

That definition keeps the workflow in order: first confirm the reporting entity and undertaking type, then map activities to delegated acts, then test alignment criteria and calculate the applicable KPIs.

  • Scope decision: is this undertaking required to disclose under ?
  • Entity decision: is it non-financial, an asset manager, a credit institution, an investment firm, or an insurance or reinsurance undertaking?
  • Eligibility decision: is the economic activity described in the relevant delegated act?
  • Alignment decision: does the activity meet the Taxonomy Regulation Article 3 conditions and related technical criteria?
Section 5

Apply the 2026 simplification rules to the correct reporting year

Commission Delegated Regulation (EU) 2026/73 applies from 1 January 2026. For a financial year starting during 2025, an undertaking may instead use the Taxonomy rules as they stood on 31 December 2025. The scope memo should record which rule set was chosen because the amended act changes materiality options, templates, and financial-undertaking denominators.

The amendment lets non-financial undertakings omit eligibility and alignment assessment for activities whose cumulative turnover or CapEx is below 10% of the corresponding KPI denominator, with separate reporting as non-material. It also gives financial undertakings that make no Taxonomy association claim a temporary standardized-statement route until 31 December 2027. Neither option removes the underlying (1) disclosure duty.

  • Record the financial year start date and whether the amended or 31 December 2025 rule set is used for a 2025 financial year.
  • If a non-financial undertaking uses a 10% assessment threshold, calculate it separately for turnover, CapEx, and, where relevant, OpEx, and report omitted amounts as non-material.
  • If a financial undertaking uses the temporary no-claim route, reproduce the standardized statement required by Article 7(9) of the amended delegated act and do not present Taxonomy association claims.
  • Do not confuse an assessment omission, a temporary reporting route, or an OpEx materiality option with being outside scope.
Section 6

Keep an evidence file for the reporting boundary

A useful scope file should let a reviewer trace the reporting obligation from the undertaking to the applicable template. It should not be a generic EU Taxonomy policy note.

For each reporting cycle, keep the legal scope basis, undertaking type, consolidation conclusion, selected annexes, timing assumption, and any voluntary-disclosure explanation together with the financial-reporting sign-off.

  • Article 19a or Article 29a conclusion and the source used for it.
  • Entity classification: non-financial undertaking or named financial-undertaking category.
  • Consolidation basis and parent-entity classification for group reporting.
  • Applicable annexes and templates.
  • KPI start date used for the reporting year, including any transition-period treatment.
  • Separate rationale for voluntary Taxonomy information, if included.
Recommended next step

Turn the Article 8 scope test into an evidence file

This EU Taxonomy scope guide helps connect the reporting entity, undertaking type, applicable annexes, and evidence owners before KPI work begins.

Primary sources

References and citations

eur-lex.europa.eu2 citations
Referenced sections
  • Binding amendment applying from 1 January 2026, with materiality options, simplified templates, revised financial-undertaking scope, and a temporary no-claim route.
  • Articles 1 and 4 introduce assessment materiality options, the temporary financial-undertaking no-claim route through 31 December 2027, application from 1 January 2026, and the option to use the rules in force on 31 December 2025 for financial years starting in 2025.
finance.ec.europa.eu2 citations
Referenced sections
  • Commission FAQ covering Article 8 reporting timing, mixed groups, consolidated reporting, and voluntary disclosures.
  • The FAQ explains that eligibility assessment is separate from accounting standards, while KPI calculation uses the relevant reporting methodology.
"How should mixed groups"
More quoted passages
"not dependent on the accounting standards"
eur-lex.europa.eu
Referenced sections
  • The Disclosures Delegated Act specifies the content, presentation, and methodology for Article 8 disclosures.
"undertakings subject to Articles 19a or 29a"
eur-lex.europa.eu
Referenced sections
  • Article 10 sets transition timing for non-financial undertakings, financial undertakings, and selected credit-institution KPIs; Article 8 requires accompanying disclosures to appear with the KPIs or through cross-references.
"Entry into force and application"
eur-lex.europa.eu
Referenced sections
  • Current Commission interpretation of the Article 8 Disclosures Delegated Act as amended by Regulation (EU) 2026/73.
eur-lex.europa.eu
Referenced sections
  • Article 8 links Taxonomy disclosures to undertakings required to publish non-financial information under Articles 19a or 29a of Directive 2013/34/EU.
"shall include in its non-financial statement"
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