What is the EU Taxonomy?
The EU Taxonomy Regulation is the EU’s official system for classifying sustainable economic activities. It helps investors and companies identify which business operations meet the EU’s environmental goals — from cutting emissions to protecting biodiversity.
To be “Taxonomy-aligned,” an activity must:
- Substantially contribute to one of six environmental objectives
- Do no significant harm to the others
- Comply with minimum social safeguards (e.g. human rights)
Companies in scope report the share of turnover, CapEx and OpEx linked to Taxonomy-aligned activities, typically in their CSRD (Corporate Sustainability Reporting Directive) sustainability report.
What changed with the Omnibus Regulation?
In 2025, the EU introduced a simplification package called the Omnibus Regulation, drastically reducing the complexity of sustainability reporting.
Only large companies must report
Mandatory reporting now applies only to companies with:
- Over 1. 000 employees
- More than €450 million in EU turnover
Smaller and mid-sized firms are exempt, unless they choose to report voluntarily.
70%fewer data points
The required disclosures are now focused and material. Companies report:
- Aligned turnover
- Aligned CapEx
- Optional OpEx
Templates are simpler and easier to complete.
Materiality threshold added
If <10% of a company’s activity is Taxonomy-eligible, detailed reporting is no longer required for those segments.
Who still needs to report?
After the 2025 update, the following must report under the EU Taxonomy:
- Companies in scope of the CSRD
- With more than 1. 000 employees
- And €450M+ in EU turnover
Everyone else. including listed SMEs, is out of scope unless they opt in voluntarily.
Why its till matters, even if you are exempt
Even without a legal obligation, companies are still expected to
- Share ESG data with larger customers or investors
- Support partners in their CSRD or Taxonomy alignment
- Respond to sustainability inquiries in tenders and financing
In other words, you may not have to report, but you will still be asked.
Why supply chain insight is more important than ever
If your company operates in energy, construction, food, or manufacturing, your supply chain is central to your sustainability story.
Supply chain data powers ESG performance
From emissions and circularity to labour conditions, stakeholders expect traceability. You need more than one-time surveys — you need structure.
Indirect impact matters
Even if you’re exempt, your buyers are not. Their reporting obligations will trickle down to you, especially if you’re a key supplier.
How Factlines helps
The Factlines platform is built to support:
- Mapping direct and indirect suppliers
- Sending and managing ESG self-assessments
- Risk scoring and follow-up
- Sharing structured data for partner reporting
With Factlines Chain Survey tool you stay in control, even if you're no longer in scope for reporting.
Ready to take control of your supply chain?
Whether or not you're legally required to report, your supply chain is your responsibility, and your opportunity. Book a demo or request a free trial to see how Factlines supports smart supply chain management and transparency.
