EU Taxonomy
A framework for true sustainability
How Siemens masters the EU taxonomy with hfp
In less than a year, we developed and implemented the company-wide EU taxonomy management system for Siemens AG on the basis of our no-code platform. It takes over the task of technical assessment in the corporate reporting process. The product, project and service portfolios as well as relevant locations and suppliers of Siemens AG worldwide are assessed in terms of eligibility and alignment and the associated sales, operating costs and investments are recognised in the annual financial statements on this basis. For the first time, Siemens AG successfully carried out its EU taxonomy reporting for fiscal year 2023 using our software system.
More than 25 years of experience in advising complex organisations
Manage complex sustainability reporting with ease!
For more than 25 years, we have been helping organisations to effectively select and efficiently achieve their non-financial goals. To optimally support your organisational efforts, we have created the hfp ESG Manager software solution for your sustainability reporting and management. We help you to fulfil the complex requirements of ESG, CSRD and EU taxonomy and to create a competitive advantage for your company from regulatory requirements.
Talking about CSRD / EU taxonomy
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We look forward to getting to know you in an initial meeting and discussing your individual challenges in implementing the EU taxonomy.
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ASSESSMENT SYSTEM
What is the EU taxonomy?
With the European Green Deal, the 27 EU member states are aiming to transition to a modern, resource-efficient and climate-neutral economy by 2050. In order to promote this transformation process through private investment in sustainable companies, the EU taxonomy was created as a separate assessment tool for the sustainability of economic activities. As a result, companies are obliged to assess their individual value creation processes with regard to the environmental targets defined by the EU and to report publicly on their progress in this regard. Companies are faced with the following challenges:
THOROUGH ANALYSIS
Objectives of the EU taxonomy
The EU Taxonomy is a subset of the CSRD and sets out a large number of detailed criteria against which companies must assess their activities. Starting with the 6 environmental objectives, also known as EU Taxonomy Goals, of the EU Taxonomy Regulation, through more than 100 business activities that are considered taxonomy-compliant, to extensive criteria that must be met so that the company's activities do not cause significant damage to other environmental objectives (DNSH Criteria Check). This requires a deep understanding of the requirements and a careful analysis of your own business processes. Due to the high level of complexity and the extensive reporting requirements, the use of EU taxonomy software is particularly worthwhile for larger companies.
NEW REQUIREMENTS
Data availability and quality
The EU taxonomy requires a large number of detailed key figures. Many key figures and assessments. The particular challenge here lies in the fact that the analysis involves non-financial key figures that have not yet been collected and processed in a structured manner in the vast majority of companies. For example, it is necessary to know the material composition of individual products, to measure GHG emissions during production or to analyze the impact of climate change on individual areas of the company. This makes it necessary to adapt internal processes, procedures and IT systems, create new control mechanisms and involve numerous stakeholders in the new requirements. processes. The deadlines for this are short.
EU TAXONOMY REPORTING OBLIGATION
Timeline for implementation
Since 2022, companies that are obliged under the NFRD have had to report on the EU taxonomy. As the regulations in previous years only defined the first two environmental objectives in more detail, the reporting obligations were manageable in the past. This will change for large, capital market-oriented companies with 500 or more employees with the successor regulation CSRD and the 2024 financial year (report in 2025). For this reporting year, it is not only mandatory to report on taxonomy eligibility for all six environmental objectives, but also to check taxonomy alignment for the first two environmental objectives. The assessment of taxonomy conformity in particular significantly increases complexity due to the DNSH assessment for all six environmental objectives. From 2025, the EU taxonomy reporting obligation will also be extended to smaller companies.