References & Standards

Discover the regulations and reporting standards, including the EU Taxonomy Regulation and delegated acts, that shape Tracenable’s EU Taxonomy dataset.

Foundational References

These are the authoritative sources we rely on to define terms, set classification rules, and resolve edge cases.

The EU Taxonomy dataset draws from a network of EU laws and standards. At its center is the EU Taxonomy Regulation, the authoritative source for defining sustainability criteria, classification methods, and mandatory disclosures.

EU Taxonomy Regulation (Regulation (EU) 2020/852)

The EU Taxonomy Regulation is the foundational law. It:

• Defines what qualifies as an environmentally sustainable activity.

• Establishes the six environmental objectives.

• Sets the four conditions: substantial contribution, Do No Significant Harm (DNSH), minimum safeguards, and compliance with technical screening criteria (TSC).

• Creates the legal obligation for large companies and financial market participants to disclose taxonomy alignment.

In short, the regulation sets the rules of the game: it defines the objectives and criteria but leaves room for delegated acts to spell out the details.

Delegated Acts

Delegated acts are implementing regulations adopted by the European Commission that make the EU Taxonomy operational. They translate the high-level framework of Regulation (EU) 2020/852 into practical rules, criteria, and disclosure requirements.

Article 8 Delegated Act (Regulation (EU) 2021/2178)

This act implements Article 8 of the Taxonomy Regulation, which requires companies to disclose their taxonomy KPIs. It:

• Defines the three mandatory KPIs: turnover, CAPEX, OPEX.

• Provides methodology for calculating eligibility vs. alignment.

• Introduces standardized templates for disclosure.

• Turns Article 8’s legal requirement into consistent, comparable reporting.

Climate Delegated Act (Regulation (EU) 2021/2139)

Defines the technical screening criteria (TSC) for activities that contribute to climate change mitigation and adaptation, covering sectors such as energy, manufacturing, transport, and buildings.

Complementary Climate Delegated Act (Regulation (EU) 2022/1214)

Introduces certain nuclear and natural gas activities as transitional solutions for climate mitigation, but only under strict conditions such as emissions limits, time-bound transition plans, and safeguards to ensure they support, rather than delay, the transition to renewable energy.

Environmental Delegated Act (Regulation (EU) 2023/2486)

Expands the taxonomy by defining TSC for the remaining four environmental objectives: sustainable water use, circular economy, pollution prevention, and biodiversity protection.

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Related Reporting Frameworks & Standards

The EU Taxonomy is not standalone. It is the cornerstone of the EU Sustainable Finance Framework and complements several other regulations:

Sustainable Finance Disclosure Regulation (SFDR, Regulation (EU) 2019/2088)

Requires financial market participants to disclose how sustainable their products are. Funds marketed as sustainable — Article 8 (“light green”) and Article 9 (“dark green”) products — must state the share of investments aligned with the EU Taxonomy.

Non-Financial Reporting Directive (NFRD, Directive 2014/95/EU) and Corporate Sustainability Reporting Directive (CSRD, Directive (EU) 2022/2464)

NFRD first required large listed companies to disclose sustainability information, including taxonomy eligibility and alignment. Its successor, CSRD, greatly expands this obligation to thousands more companies and embeds taxonomy KPIs (turnover, CAPEX, OPEX) directly into the new European Sustainability Reporting Standards (ESRS).

European Green Bond Regulation (2023)

Establishes the EU Green Bond Standard, requiring that bond proceeds are allocated primarily to taxonomy-aligned activities, reinforcing the taxonomy as the reference point for green capital markets.

EU Climate Benchmarks Regulation (Regulation (EU) 2019/2089)

Ensures that EU Climate Transition and Paris-aligned benchmarks use taxonomy definitions when determining which activities and investments qualify as consistent with climate goals.

In practice: the taxonomy provides the criteria, while SFDR, CSRD, Green Bonds, and Benchmarks are the disclosure and market instruments that apply those criteria.

Takeaway

With Tracenable’s EU Taxonomy dataset, you get:

• Jurisdiction-anchored definitions based directly on the EU Taxonomy Regulation and its delegated acts.

• Standardized KPIs and eligibility categories that reflect how companies are required to report under Article 8 and CSRD.

• Full traceability to original disclosures, ensuring audit-grade use in compliance, benchmarking, and investment workflows.

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