EU Taxonomy in 2025: What changed and why supply chain control still matters
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:
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.
In 2025, the EU introduced a simplification package called the Omnibus Regulation, drastically reducing the complexity of sustainability reporting.
Mandatory reporting now applies only to companies with:
Smaller and mid-sized firms are exempt, unless they choose to report voluntarily.
The required disclosures are now focused and material. Companies report:
Templates are simpler and easier to complete.
If <10% of a company’s activity is Taxonomy-eligible, detailed reporting is no longer required for those segments.
After the 2025 update, the following must report under the EU Taxonomy:
Everyone else. including listed SMEs, is out of scope unless they opt in voluntarily.
Even without a legal obligation, companies are still expected to
In other words, you may not have to report, but you will still be asked.
If your company operates in energy, construction, food, or manufacturing, your supply chain is central to your sustainability story.
From emissions and circularity to labour conditions, stakeholders expect traceability. You need more than one-time surveys — you need structure.
Even if you’re exempt, your buyers are not. Their reporting obligations will trickle down to you, especially if you’re a key supplier.
The Factlines platform is built to support:
With Factlines Chain Survey tool you stay in control, even if you're no longer in scope for reporting.
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.
