How Factlines’ EU Taxonomy module supports supply chain due diligence
As regulatory demands increase across Europe, many companies remain uncertain about how the EU Taxonomy integrates with their broader ESG efforts. At Factlines, we believe taxonomy reporting should not be isolated. It must be viewed as part of a company’s overall risk and supply chain picture.
In this interview, Product Manager Joana Belo Pereira shares insights from developing our EU Taxonomy module and how it naturally links to our work on supply chain transparency and supplier assessments.
Why is Factlines launching a taxonomy product now?
-Time is of the essence. For Norwegian companies within the scope of the EUTaxonomy Regulation that have been granted a phase-in period, it should be of great interest to begin reporting as soon as possible. The Taxonomy Regulation aims to make the EEA region the world’s first carbon-neutral zone by 2050. By 2030, companies are expected to reduce their carbon footprint by nearly half (!), based on 1990 levels—an annual reduction of about 7%. And this only addresses the environmental aspect of the taxonomy. There are significant implications for business ethics as well.
Who is the product meant for?
-The current taxonomy covers around 90 economic activities across 13 industries—from forestry and hydropower to software solutions. With the 2024 update, nearly 150 activities are now included, expanding the scope to new sectors such as aviation.
Whichever way you look at it, the taxonomy will affect thousands of companies in the EEA. Those able to understand and respond to the requirements will find it easier to access funding and stay competitive in tenders. In the years ahead, the scope will expand to include SMEs as well, which make up 97.5% of all EEA-based companies.
What differentiates Factlines from competitors?
-Factlines has been engaging with the social aspects of the taxonomy for over seven years, particularly in auditing, qualifying suppliers, and enabling structured follow-up of potential labour and human rights risks.
This new module builds upon that foundation. Instead of creating a standalone tool, we have developed a natural extension of our SRM platform—maintaining the same high standards of automation, traceability, and usability that our Transparency Act clients are accustomed to. We assist clients who require self-service ESG tools, as well as those who need support from advisors to achieve their reporting and compliance objectives.
How will the taxonomy product be integrated into the Factlines Supplier Relationship Management (SRM) software?
-Many of the minimum safeguards and PAI (Principal Adverse Impact) indicators already align with core elements in our SRM platform — such as assessments of corruption, labour conditions, and environmental risk. With this expansion, new criteria such as tax conduct, fair competition, and gender diversity will be more effectively incorporated. This means companies working with Factlines for supply chain follow-up can gain a more comprehensive view of how they meet EU Taxonomy requirements.
EU taxonomy compliance is just one element of the broader shift towards structured and verifiable sustainability data. At Factlines, we continue developing tools that help companies understand risk, monitor suppliers, and document efforts in line with evolving legislation.
If you are navigating taxonomy reporting, or aiming to connect it with broader supply chain assessments, you are welcome to get in touch.
