How European financial and non-financial companies are implementing the EU Taxonomy Regulation
The EU Taxonomy Regulation has been in force for more than a year, both for financial and non-financial companies. This classification system distinguishes between “Taxonomy eligible” and “Taxonomy aligned” economic activities: Taxonomy eligible economic activities are those that can in principle be assigned to an economic activity (“eligibility”). Taxonomy aligned activities are those that also fulfill the associated criteria (technical screening and minimum safeguards criteria) (“alignment”).
PwC has already analysed the current state of Taxonomy reporting in 2022. This year PwC has extended the analysis to industrial and financial companies across Europe. The key finding: the EU Taxonomy reporting of the analysed companies and institutions still lacks transparency and comparability.
To whom the EU Taxonomy applies
Large, listed industrial companies with more than 500 employees must report on the share of their Taxonomy eligible economic activities in turnover, capital expenditure and operating expenditure. Since financial year 2022 they are subject to full Taxonomy reporting, i.e. including Taxonomy-alignment.
Financial institutions must report to which extent their asset and financing portfolios are Taxonomy eligible. They depend on the reported data of their counterparties, mostly industrial companies, for their reporting. Taking this into consideration they are only subject to Taxonomy alignment reporting from financial year 2023. Due to the different reporting requirements for financial and non-financial companies, the respective findings are presented separately.
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EU Taxonomy Reporting 2023
"For the second consecutive year of the EU Taxonomy implementation, PwC have conducted an analysis of the Taxonomy disclosures prepared and published by both financial and non-financial companies in the European Union, based on annual reports and sustainability reports. Great insights on what is happening on the market and across industries have been presented in the study. Have a good reading!"
