Sustainability Update: EU Taxonomy Amendments Published

(09.01.26)

On 8 January, the European Commission published the long-awaited EU Taxonomy amendments. 

The amendments affect both Taxonomy reporting and technical screening criteria and are intended to reduce complexity while maintaining the overall objectives of the framework.

Below is a structured overview of the key changes and their practical implications.

Overview: Timeline & application

• The amended rules apply from 1 January 2026, i.e. for FY 2025 reporting.

• For FY 2025, companies may choose:
  • apply the amended rules already, or
  • to continue applying the previous Delegated Acts for one additional year.
• This transition option provides flexibility for adapting internal processes and reporting templates.

Key changes

Materiality-based simplifications

• 10% materiality threshold
  Economic activities that together account for less than 10% of turnover, CapEx or OpEx do not require a full Taxonomy assessment.
• These activities still need to be disclosed, but only as “non-material activities” in the templates. 

OpEx reporting flexibility

• Where OpEx is not material to the business model, companies may omit detailed OpEx disclosures entirely.
• Conditions:
  • total OpEx must still be disclosed, and
  • a clear justification must be provided.

Updated reporting structure

• Introduction of a new summary reporting template, reducing granularity and improving readability.

Changes to DNSH criteria

The amendments revise the Do No Significant Harm (DNSH) criteria related to pollution prevention and control:

• Simplification of complex screening requirements related to chemicals.
• Removal of certain screening and reporting obligations for hazardous substances in finished goods where disclosure is not required under REACH Article 57.

These changes are intended to make DNSH assessments more proportionate and practicable.