--- title: "EU Taxonomy Eligibility vs Alignment Explained" canonical_url: "https://www.sorena.io/artifacts/eu/taxonomy-regulation/taxonomy-eligibility-vs-alignment-explained" source_url: "https://www.sorena.io/artifacts/eu/taxonomy-regulation/taxonomy-eligibility-vs-alignment-explained" author: "Sorena AI" description: "Explain EU Taxonomy eligibility and alignment under Article 8, the Disclosures Delegated Act, Article 3, technical screening criteria, DNSH, and safeguards." published_at: "2026-05-09" updated_at: "2026-05-09" keywords: - "EU Taxonomy eligibility vs alignment" - "Taxonomy eligible economic activity" - "Taxonomy aligned economic activity" - "Article 8 Disclosures Delegated Act" - "Article 3 Taxonomy Regulation" - "technical screening criteria" - "DNSH" - "minimum safeguards" - "turnover CapEx OpEx KPIs" - "EU Taxonomy" - "Taxonomy eligibility" - "Taxonomy alignment" - "Article 8" - "Disclosures Delegated Act" --- **[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 Eligibility vs Alignment Explained 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* *Article 8* ## EU Taxonomy eligibility vs alignment explained Eligibility asks whether an economic activity is described in the Taxonomy delegated acts. Alignment asks whether that activity satisfies the Article 3 conditions for environmental sustainability. This comparison helps keep scoping, KPI reporting, technical screening criteria, DNSH, and minimum-safeguards evidence separate. EU Taxonomy eligibility and alignment are sequential but different conclusions. Article 8 reporting starts by identifying Taxonomy-eligible and non-eligible activities for KPI disclosure. Alignment is a stricter assessment: the activity must substantially contribute to at least one environmental objective, avoid significant harm to the others, comply with minimum safeguards, and meet the applicable technical screening criteria. ## Eligibility vs alignment: what each conclusion proves Use the rows below to separate the scoping question from the sustainability-quality test that supports Article 8 disclosures. - **Taxonomy eligibility**: An eligible economic activity is one described in the delegated acts adopted under the Taxonomy Regulation. Eligibility is a scope and reporting classification; it does not by itself prove that the activity is environmentally sustainable. - **Taxonomy alignment**: A Taxonomy-aligned activity must meet the Article 3 conditions, including substantial contribution, DNSH, minimum safeguards, and the applicable technical screening criteria. | Dimension | Taxonomy eligibility | Taxonomy alignment | Operational implication | Sources | | --- | --- | --- | --- | --- | | Question answered | Eligibility answers: is this economic activity described in a Taxonomy delegated act for one of the environmental objectives? | Alignment answers: does the eligible activity also qualify as environmentally sustainable under Article 3 and the relevant delegated-act criteria? | Do not present eligibility as proof of sustainability. Treat it as the entry point for KPI reporting and the starting population for alignment testing. | [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Defines eligibility by reference to activities described in delegated acts.
[Regulation (EU) 2020/852, Article 3](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Lists the conditions for an economic activity to qualify as environmentally sustainable.
[Commission Notice C/2023/305](https://eur-lex.europa.eu/eli/C/2023/305/oj/eng?ref=sorena.io) - Explains that eligible activities are defined by delegated-act descriptions while aligned activities are defined by compliance with Article 3 criteria. | | Who must act | Undertakings subject to Article 8 disclosure obligations under the NFRD or CSRD must report the proportion of Taxonomy-eligible economic activities in their turnover, CapEx, and OpEx using the Disclosures Delegated Act templates. | The same undertakings must additionally demonstrate that eligible activities satisfy the four Article 3 alignment conditions before reporting them as Taxonomy-aligned in the KPI templates. | Assign eligibility mapping ownership and alignment evidence ownership to different teams or at least to different evidence folders so the two-step disclosure process can be audited separately. | [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Article 8 FAQ supports the disclosure obligation scope for undertakings.
[Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&ref=sorena.io) - Article 8 and the Disclosures Delegated Act apply to large undertakings with NFRD or CSRD reporting duties.
[Commission Delegated Regulation (EU) 2021/2178](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Delegated Act specifies turnover, CapEx, and OpEx KPI templates for both eligible and aligned reporting. | | Trigger or threshold | Eligibility is triggered when an economic activity is described in a Taxonomy delegated act covering any of the six environmental objectives. No quantitative threshold is needed; the match to the delegated-act activity description is sufficient to report the activity as eligible. | Alignment is triggered only after eligibility is confirmed. It requires meeting the substantial contribution criteria, the DNSH requirements for all other objectives, and the minimum social safeguards set out in the applicable delegated-act technical screening criteria. | Keep the eligibility mapping and the alignment evidence chain in separate records so a future auditor can verify each step independently without conflating the scoping test with the sustainability test. | [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Article 8 FAQ explains when an activity is Taxonomy-eligible.
[Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&ref=sorena.io) - Article 3 sets the four-part alignment conditions.
[Commission Notice C/2023/305 on Article 8 Taxonomy Regulation](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ%3AC%3A2023%3A305%3A01&ref=sorena.io) - Commission Notice clarifies the two-step eligibility-then-alignment sequence. | | Core obligations | Eligibility reporting obligations require calculating the share of eligible turnover, CapEx, and OpEx against total figures using the Disclosures Delegated Act templates, and disclosing what proportion of business is not covered by any Taxonomy delegated act. | Alignment reporting obligations require additional evidence for substantial contribution, DNSH assessment, and minimum-safeguards compliance for each eligible activity reported as aligned, plus separate KPI tables for the aligned share. | Keep one evidence set for each obligation type: a delegated-act activity mapping for eligibility and a TSC, DNSH, and safeguards assessment for alignment, so neither set is confused with the other in disclosures. | [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Article 8 FAQ supports the eligibility KPI reporting obligations.
[Commission Delegated Regulation (EU) 2021/2178](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Disclosures Delegated Act specifies the aligned KPI templates and evidence structure.
[Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&ref=sorena.io) - Taxonomy Regulation Article 8 requires both eligibility and alignment disclosures. | | Evidence needed | Eligibility evidence should show the activity description used, the delegated act and objective consulted, and the mapping from revenue, CapEx, OpEx, asset, or exposure data to the reported KPI line. | Alignment evidence should add proof for substantial contribution, DNSH, minimum safeguards, and the applicable technical screening criteria for the activity and objective. | Eligibility evidence can feed the alignment file, but it is incomplete unless the alignment criteria are documented and retained. | [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Explains that eligibility is assessed against delegated-act activity descriptions and KPI reporting uses financial-statement principles where relevant.
[Regulation (EU) 2020/852, Article 3](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Requires compliance with Article 18 safeguards and Commission technical screening criteria for environmental sustainability.
[TEG final Taxonomy report](https://finance.ec.europa.eu/system/files/2020-03/200309-sustainable-finance-teg-final-report-taxonomy_en.pdf?ref=sorena.io) - Describes the Taxonomy as performance thresholds covering substantial contribution, DNSH, and safeguards. | | Reporting timing | Eligibility was the first Article 8 reporting step: from January 2022, large undertakings reported eligible and non-eligible activities and qualitative information for the previous reporting period. | Alignment reporting followed later: large non-financial undertakings reported aligned climate activities in 2023, and large financial institutions reported eligible and aligned climate activities in 2024. | When reviewing historic reports, check which reporting year and undertaking type applied before judging whether an alignment assessment should have been present. | [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Explains that disclosures cover the previous annual reporting period. | | Enforcement and assurance | Eligibility disclosures are included in the NFRD or CSRD non-financial or sustainability statements and are subject to the statutory audit or limited assurance review applicable to those reports under national audit and accounting frameworks. | Alignment disclosures are subject to the same audit or assurance scope. The technical screening criteria, DNSH conditions, and minimum-safeguards evidence should be maintained so an assurance provider or supervisor can verify the alignment calculation independently. | Keep source evidence for each activity at a level of detail that satisfies audit or assurance review, because eligibility and alignment disclosures now fall within the statutory and supervisory scope of CSRD assurance frameworks. | [Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&ref=sorena.io) - Taxonomy alignment evidence must support the assurance provider's verification of the disclosed aligned share.
[Commission Delegated Regulation (EU) 2021/2178](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Disclosures Delegated Act specifies the evidence required for both eligible and aligned KPI calculations. | | Overlap and reuse | Eligibility analysis produces activity descriptions and sector mappings that directly support the first step of alignment assessment and can be reused as the base layer for alignment evidence without repeating the delegated-act matching work. | Alignment evidence, such as technical screening criteria assessments, DNSH reviews, and safeguards checks, cannot be substituted for eligibility analysis even if alignment has been demonstrated, because the reporting templates require both KPIs to be disclosed separately. | Build the eligibility map first and use it as input to the alignment assessment; do not skip the eligibility step when alignment evidence is already available, as both disclosures are independently required. | [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Article 8 FAQ supports using eligibility as the foundation for the alignment assessment.
[Commission Delegated Regulation (EU) 2021/2178](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Disclosures Delegated Act templates require both eligible and aligned KPIs to be reported separately.
[Commission Notice C/2023/305 on Article 8 Taxonomy Regulation](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ%3AC%3A2023%3A305%3A01&ref=sorena.io) - Commission Notice explains the two-step sequence and the separate reporting requirements. | | Practical decision rule | Use the eligibility label only after mapping an activity to a delegated-act description and tying it to the relevant KPI denominator and reporting boundary. | Use the aligned label only after the same activity passes all Article 3 conditions and the evidence is strong enough for Article 8 presentation. | In public copy, write 'eligible' and 'aligned' as separate conclusions. If an activity is eligible but lacks proof for one alignment condition, call it eligible but not aligned. | [Commission Notice C/2023/305](https://eur-lex.europa.eu/eli/C/2023/305/oj/eng?ref=sorena.io) - Grounds the delegated-act description test for eligibility.
[Regulation (EU) 2020/852, Article 3](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Grounds the conditions for environmental sustainability.
[Disclosures Delegated Act templates](https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02021R2178-20240101&ref=sorena.io) - Supports separate presentation of eligible but not aligned activities. | Sources for Question answered - Taxonomy eligibility: - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Defines eligibility by reference to activities described in delegated acts. - Quote: "an eligible economic activity" Sources for Question answered - Taxonomy alignment: - [Regulation (EU) 2020/852, Article 3](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Lists the conditions for an economic activity to qualify as environmentally sustainable. - Quote: "Criteria for environmentally sustainable economic activities" Sources for Question answered - operational implication: - [Commission Notice C/2023/305](https://eur-lex.europa.eu/eli/C/2023/305/oj/eng?ref=sorena.io) - Explains that eligible activities are defined by delegated-act descriptions while aligned activities are defined by compliance with Article 3 criteria. - Quote: "Taxonomy-eligible economic activities" Sources for Who must act - Taxonomy eligibility: - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Article 8 FAQ supports the disclosure obligation scope for undertakings. - Quote: "Taxonomy-eligible and Taxonomy non-eligible" Sources for Who must act - Taxonomy alignment: - [Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&ref=sorena.io) - Article 8 and the Disclosures Delegated Act apply to large undertakings with NFRD or CSRD reporting duties. - Quote: "environmentally sustainable economic activity" Sources for Who must act - operational implication: - [Commission Delegated Regulation (EU) 2021/2178](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Delegated Act specifies turnover, CapEx, and OpEx KPI templates for both eligible and aligned reporting. - Quote: "Taxonomy-eligible and Taxonomy-aligned economic activities" Sources for Trigger or threshold - Taxonomy eligibility: - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Article 8 FAQ explains when an activity is Taxonomy-eligible. - Quote: "Taxonomy-eligible economic activities" Sources for Trigger or threshold - Taxonomy alignment: - [Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&ref=sorena.io) - Article 3 sets the four-part alignment conditions. - Quote: "environmentally sustainable economic activity" Sources for Trigger or threshold - operational implication: - [Commission Notice C/2023/305 on Article 8 Taxonomy Regulation](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ%3AC%3A2023%3A305%3A01&ref=sorena.io) - Commission Notice clarifies the two-step eligibility-then-alignment sequence. - Quote: "taxonomy-eligible" Sources for Core obligations - Taxonomy eligibility: - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Article 8 FAQ supports the eligibility KPI reporting obligations. - Quote: "Taxonomy-eligible and Taxonomy non-eligible" Sources for Core obligations - Taxonomy alignment: - [Commission Delegated Regulation (EU) 2021/2178](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Disclosures Delegated Act specifies the aligned KPI templates and evidence structure. - Quote: "Taxonomy-aligned economic activities" Sources for Core obligations - operational implication: - [Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&ref=sorena.io) - Taxonomy Regulation Article 8 requires both eligibility and alignment disclosures. - Quote: "economic activities in terms of turnover, capital expenditure" Sources for Evidence needed - Taxonomy eligibility: - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Explains that eligibility is assessed against delegated-act activity descriptions and KPI reporting uses financial-statement principles where relevant. - Quote: "not dependent on the accounting standards" Sources for Evidence needed - Taxonomy alignment: - [Regulation (EU) 2020/852, Article 3](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Requires compliance with Article 18 safeguards and Commission technical screening criteria for environmental sustainability. - Quote: "minimum safeguards" Sources for Evidence needed - operational implication: - [TEG final Taxonomy report](https://finance.ec.europa.eu/system/files/2020-03/200309-sustainable-finance-teg-final-report-taxonomy_en.pdf?ref=sorena.io) - Describes the Taxonomy as performance thresholds covering substantial contribution, DNSH, and safeguards. - Quote: "meet minimum safeguards" Sources for Reporting timing - Taxonomy eligibility: - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Sets out the January 2022 eligibility reporting start and explains that first-year reporting did not require alignment assessment. - Quote: "As of January 2022" Sources for Reporting timing - Taxonomy alignment: - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Identifies the 2023 and 2024 alignment reporting milestones for large non-financial undertakings and large financial institutions. - Quote: "large financial institutions" Sources for Reporting timing - operational implication: - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Explains that disclosures cover the previous annual reporting period. - Quote: "previous annual reporting period" Sources for Enforcement and assurance - Taxonomy eligibility: - [Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&ref=sorena.io) - Taxonomy Regulation Article 8 disclosure obligations are within the scope of reporting requirements subject to audit. - Quote: "disclosure obligations" Sources for Enforcement and assurance - Taxonomy alignment: - [Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&ref=sorena.io) - Taxonomy alignment evidence must support the assurance provider's verification of the disclosed aligned share. - Quote: "environmentally sustainable economic activity" Sources for Enforcement and assurance - operational implication: - [Commission Delegated Regulation (EU) 2021/2178](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Disclosures Delegated Act specifies the evidence required for both eligible and aligned KPI calculations. - Quote: "Taxonomy-eligible and Taxonomy-aligned economic activities" Sources for Overlap and reuse - Taxonomy eligibility: - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Article 8 FAQ supports using eligibility as the foundation for the alignment assessment. - Quote: "Taxonomy-eligible economic activities" Sources for Overlap and reuse - Taxonomy alignment: - [Commission Delegated Regulation (EU) 2021/2178](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Disclosures Delegated Act templates require both eligible and aligned KPIs to be reported separately. - Quote: "Taxonomy-aligned economic activities" Sources for Overlap and reuse - operational implication: - [Commission Notice C/2023/305 on Article 8 Taxonomy Regulation](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ%3AC%3A2023%3A305%3A01&ref=sorena.io) - Commission Notice explains the two-step sequence and the separate reporting requirements. - Quote: "taxonomy-eligible" Sources for Practical decision rule - Taxonomy eligibility: - [Commission Notice C/2023/305](https://eur-lex.europa.eu/eli/C/2023/305/oj/eng?ref=sorena.io) - Grounds the delegated-act description test for eligibility. - Quote: "description of the economic activities" Sources for Practical decision rule - Taxonomy alignment: - [Regulation (EU) 2020/852, Article 3](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Grounds the conditions for environmental sustainability. - Quote: "qualify as environmentally sustainable" Sources for Practical decision rule - operational implication: - [Disclosures Delegated Act templates](https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02021R2178-20240101&ref=sorena.io) - Supports separate presentation of eligible but not aligned activities. - Quote: "eligible but not taxonomy-aligned" ### How should teams decide whether to say eligible or aligned? - Say eligible only when the activity is described in the applicable Taxonomy delegated acts. - Say aligned only when the activity also satisfies Article 3: substantial contribution, DNSH, minimum safeguards, and technical screening criteria. - When evidence is missing, keep the activity out of the aligned numerator rather than relying on assumptions. Sources for the practical decision rule: - [Regulation (EU) 2020/852, Article 3 and Article 8](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Provides the core legal distinction between disclosure of activities associated with environmentally sustainable activities and the criteria for environmental sustainability. - Quote: "how and to what extent" - [Commission Notice C/2023/305](https://eur-lex.europa.eu/eli/C/2023/305/oj/eng?ref=sorena.io) - Explains the definitions of Taxonomy-eligible and Taxonomy-aligned activities in Article 8 reporting guidance. - Quote: "Taxonomy-eligible economic activities" ## When should teams use this eligibility-vs-alignment explanation? Use it before preparing Article 8 KPI tables, drafting sustainability-report language, reviewing green-finance claims, or deciding whether an activity can move from the eligible population into the aligned numerator. The most common error is treating eligibility as an endorsement. It is not. Eligibility means the activity is covered by Taxonomy activity descriptions; alignment requires the separate environmental-sustainability test. - Use the eligibility review to map activities, reporting boundaries, and turnover, CapEx, OpEx, asset, investment, lending, or insurance data. - Use the alignment review to document technical screening criteria, substantial contribution, DNSH, and minimum safeguards. - Use separate labels for eligible, aligned, eligible but not aligned, and non-eligible activities in source records and public wording. Sources for this answer: - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Supports the Article 8 eligibility reporting workflow and the distinction between eligibility and later alignment reporting. - [Regulation (EU) 2020/852](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Supports the Article 3 alignment conditions and Article 8 KPI disclosure basis. - [Disclosures Delegated Act](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Specifies Article 8 content, methodology, presentation, and KPI disclosure requirements. *Recommended next step* *Placement: after evidence section* ## Turn EU Taxonomy guidance into an evidence workflow This EU Taxonomy guide helps connect cited 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. ## Primary sources - [Regulation (EU) 2020/852 (Taxonomy Regulation)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32020R0852&ref=sorena.io) - Taxonomy alignment evidence must support the assurance provider's verification of the disclosed aligned share. - Quote: "environmentally sustainable economic activity" - [Commission Delegated Regulation (EU) 2021/2178 (Disclosures Delegated Act)](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Article 8 delegated act specifying content, methodology, presentation, and KPI disclosure requirements. - Quote: "key performance indicators" - [Article 8 eligibility FAQ](https://finance.ec.europa.eu/system/files/2022-01/sustainable-finance-taxonomy-article-8-report-eligible-activities-assets-faq_en.pdf?ref=sorena.io) - Article 8 FAQ supports using eligibility as the foundation for the alignment assessment. - Quote: "Taxonomy-eligible economic activities" - [Commission Notice C/2023/305](https://eur-lex.europa.eu/eli/C/2023/305/oj/eng?ref=sorena.io) - Explains the definitions of Taxonomy-eligible and Taxonomy-aligned activities in Article 8 reporting guidance. - Quote: "Taxonomy-eligible economic activities" - [TEG final Taxonomy report](https://finance.ec.europa.eu/system/files/2020-03/200309-sustainable-finance-teg-final-report-taxonomy_en.pdf?ref=sorena.io) - Describes the Taxonomy as performance thresholds covering substantial contribution, DNSH, and safeguards. - Quote: "meet minimum safeguards" - [Regulation (EU) 2020/852, Article 3](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Grounds the conditions for environmental sustainability. - Quote: "qualify as environmentally sustainable" - [Commission Delegated Regulation (EU) 2021/2178](https://eur-lex.europa.eu/eli/reg_del/2021/2178/oj/eng?ref=sorena.io) - Disclosures Delegated Act templates require both eligible and aligned KPIs to be reported separately. - Quote: "Taxonomy-aligned economic activities" - [Commission Notice C/2023/305 on Article 8 Taxonomy Regulation](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ%3AC%3A2023%3A305%3A01&ref=sorena.io) - Commission Notice explains the two-step sequence and the separate reporting requirements. - Quote: "taxonomy-eligible" - [Disclosures Delegated Act templates](https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02021R2178-20240101&ref=sorena.io) - Supports separate presentation of eligible but not aligned activities. - Quote: "eligible but not taxonomy-aligned" - [Regulation (EU) 2020/852, Article 3 and Article 8](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852&ref=sorena.io) - Provides the core legal distinction between disclosure of activities associated with environmentally sustainable activities and the criteria for environmental sustainability. - Quote: "how and to what extent" ## Related 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): cited 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 cited-source 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): cited 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): cited 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): cited 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): cited 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): cited 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): cited 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: 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 Financial KPIs and Green Asset Ratio (GAR) FAQ](/artifacts/eu/taxonomy-regulation/faq/financial-kpis-and-gar.md): FAQ on EU Taxonomy Article 8 financial undertaking KPIs, credit institution Green Asset Ratio (GAR), reporting dates, exclusions, and qualitative disclosures. - [EU Taxonomy GAR and financial undertaking KPIs](/artifacts/eu/taxonomy-regulation/gar-and-financial-undertaking-kpis.md): cited 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): cited 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 cited 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. --- [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). 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