As regulatory demands grow across Europe, many companies are still unsure how the EU Taxonomy fits into their broader ESG work. At Factlines, we believe taxonomy reporting should not be siloed—it must be seen as part of a company’s full risk and supply chain picture.
In this interview, Product Manager Joana Belo Pereira shares insights from the development of our EU Taxonomy module, and how it naturally connects 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 that fall under the scope of the EUTaxonomy Regulation and have been granted a phase-in period, it should be of great interest to get started with reporting as soon as possible.
The Taxonomy Regulation aims to transform the EEA region into the first carbon neutral zone in the world by 2050. By 2030, companies are expected to have reduced their carbon footprint by almost half (!), based on 1990 levels—an annual reduction of about 7%. And this only touches on the environmental side of the taxonomy. There are major implications for business ethics as well.
Who is the product intended for?
The current taxonomy covers around 90 economic activities across 13 industries—from forestry and hydropower to software solutions. With the 2024 update, nearly 150activities are now included, expanding 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 remain competitive in tenders. In the years ahead, the scope will expand to cover SMEs as well, which make up 97.5% of all EEA-based companies.
What sets Factlines apart from competitors?
Factlines has been working with the social aspects of the taxonomy for more than seven years, especially around auditing and qualifying suppliers and enabling structured follow-up of potential labour and human rights risks.
This new module builds on that foundation. Rather than launching a standalone tool, we’ve developed a natural extension of our SRM platform—ensuring the same high standard of automation, traceability, and usability that our Transparency Act customers are familiar with.
We support clients who need self-service ESG tools, as well as those who require support from advisors to meet their reporting and compliance goals.
How will the taxonomy product be incorporated into the Factlines Supplier Relationship Management (SRM) software?
Many of the minimum safeguards and PAI (Principal Adverse Impact) indicators already overlap 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 better integrated. This means companies working withFactlines for supply chain follow-up can gain a more complete view of how they align with EU Taxonomy requirements.
EU taxonomy compliance is just one part of the larger shift toward structured and verifiable sustainability data. At Factlines, we continue developing tools that help companies understand risk, follow up with suppliers, and document efforts aligned with evolving legislation.
If you are navigating taxonomy reporting—or want to connect it with broader supply chain assessments, you are welcome to get in touch.
