EU Taxonomy Regulation

Date of Adoption
18-Jun-20

Omnibus Packages
On 26 February 2025, the European Commission adopted the Omnibus packages, targeting the CSDDD, CSRD, Taxonomy, and CBAM, with a focus on reducing the complexity of EU requirements for all businesses, especially SMEs and small mid-caps (SMCs).

In addition, on 4 July 2025 the Commission adopted a Delegated Regulation (.../...) amending the Taxonomy Disclosures Delegated Act (2021/2178), the Climate Delegated Act (2021/2139), and the Environmental Delegated Act (2023/2486). These amendments aim to simplify reporting, introduce materiality thresholds, and streamline the “Do No Significant Harm” (DNSH) criteria for chemicals.

Key changes for Taxonomy (Omnibus + Delegated Regulation):

• Voluntary reporting for mid-sized large companies
  Companies with over 1,000 employees and turnover below €450 million can choose whether to report Taxonomy alignment.
• Partial alignment allowed
  Companies can voluntarily report progress towards sustainability, even if not fully Taxonomy-aligned.
• Standardised and simplified reporting
  New templates reduce data points by ~64-70% for non-financial undertakings and up to 89% for some financial institutions; separate fossil gas and nuclear templates removed; more concise KPI formats.
• Materiality threshold introduced
  No need to assess activities making up less than 10% of each KPI’s denominator (turnover, CapEx, OpEx, or relevant financial exposures). Non-material activities must still be disclosed in aggregate and by sector.
• Simplified rules for banks
  Banks can exclude exposures to non-CSRD entities from the Green Asset Ratio (GAR) denominator; postponement of Trading Book KPI and Fees & Commissions KPI until 2028; optional relief from detailed templates until end-2027 if no sustainability claims are made.
• DNSH criteria changes
  Immediate simplification of Appendix C for chemicals: clarified exemptions under EU law (RoHS, ozone-depleting substances) and deletion of extra paragraph on self-classified substances, limiting checks to REACH candidate list substances only.