EUROPEAN
COMMISSION

Brussels, 6.7.2021
C(2021) 4987 final

COMMISSION DELEGATED REGULATION (EU) …/...
of 6.7.2021
supplementing Regulation (EU) 2020/852 of the European Parliament and of theCouncil by specifying the content and presentation of information to be disclosed byundertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning
environmentally sustainable economic activities, and specifying the methodology tocomply with that disclosure obligation(Text with EEA relevance){SWD(2021) 183 final}

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EXPLANATORY MEMORANDUM
1.

CONTEXT OF THE DELEGATED ACT

A key objective of the European Commission’s (‘Commission’) action plan on financing
sustainable growth1 is to reorient capital flows towards sustainable investment and ensure
market transparency. To achieve this objective, the Commission called for the creation of an
EU classification system for sustainable activities, i.e. an EU taxonomy.
Regulation (EU) 2020/852 (the ‘Taxonomy Regulation’)2 was published in the Official
Journal of the European Union on 22 June 2020 and entered into force on 12 July 2020. It
aims to define environmentally sustainable activities3. The Taxonomy Regulation is an
important piece of legislation for enabling and scaling up sustainable investment and thus
implementing the European Green Deal4, including an economy that works for people andensures a just transition that creates employment and leaves nobody behind. Notably, by
providing companies, investors and policymakers with the definitions of which economic
activities can be considered as environmentally sustainable, it is expected to help shift
investments where they are most needed. The current COVID-19 pandemic has reinforced theneed to make the EU economy, businesses and societies, in particular health systems, more
resilient against climate and environmental risks. The Taxonomy Regulation can be a valuable
tool to help channel funding towards the green recovery. It can also serve as an instrument toguide companies and investors in the transition towards sustainability.
The Taxonomy Regulation applies to financial market participants that offer financial
products, financial and non-financial undertakings within the scope of Directive 2014/95/EU(the Non-Financial Reporting Directive - ‘NFRD’)5. It also applies to Member States and the
EU in the context of introducing national and EU-level requirements regarding financial
market participants or to issuers for the purpose of labelling financial products or corporate
bonds that are marketed as environmentally sustainable.
The Taxonomy Regulation identifies environmentally sustainable economic activities basedon technical screening criteria set out in the Commission’s delegated acts developed under
this Regulation6. The first delegated act concerning the technical screening criteria for
economic activities with significant contribution to climate change mitigation and adaptation(the ‘Climate Delegated Act’) was adopted on 4 June 20217. Another delegated act
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Communication from the Commission to the European Parliament, the European Council, the Council,
the European Central Bank, the European Economic and Social Committee and the Committee of theRegions, Action Plan: Financing Sustainable Growth, 8 March 2018.
Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on theestablishment of a framework to facilitate sustainable investment, and amending Regulation (EU)2019/2088 (OJ L 198, 22.6.2020, p. 13–43).
Article 3 and 9 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June
2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation(EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13–43).
Europe’s sustainable growth strategy and the translation of the Union's commitments to implement theParis Agreement and the United Nations Sustainable Development Goals.
Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending
Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large
undertakings and groups (OJ L 330, 15.11.2014, p. 1–9).
Article 3, point (d) of Regulation (EU) 2020/852.
Commission Delegated Regulation (EU) …/... supplementing Regulation (EU) 2020/852 of the European
Parliament and of the Council by establishing the technical screening criteria for determining theconditions under which an economic activity qualifies as contributing substantially to climate change

1ENconcerning the technical screening criteria for the remaining four environmental objectives(‘the Environmental Delegated Act’) will be developed and adopted later.
Article 8(1) of the Taxonomy Regulation, provides that certain large undertakings that are
required to publish non-financial information under the NFRD (‘undertakings’) should
disclose information to the public on how and to what extent their activities are associatedwith environmentally sustainable economic activities as defined under the EU Taxonomy
legislation. Following the review of the NFRD by the Corporate Sustainability Reporting
Directive (‘CSRD’)8, the scope of undertakings covered by Article 8 of the Taxonomy
Regulation would be enlarged9. Article 8(2) specifies the key performance indicators (‘KPIs’)
related to turnover, capital expenditure (‘CapEx’) and operational expenditure (‘OpEx’) that
non-financial undertakings must disclose, but it does not specify equivalent indicators forfinancial undertakings, mainly large banks, asset managers, investment firms, insurance andreinsurance undertakings. Article 8(4) of the Taxonomy Regulation requires the Commission
to adopt by 1 June 2021 a delegated act to further specify the content, methodology, andpresentation of the information to be disclosed by both non-financial and financial
undertakings (‘Delegated Act’).
The Delegated Act specifies the disclosure obligations under Article 8 of the Taxonomy
Regulation. The rules set out in the Delegated Act allows companies to translate the technicalscreening criteria of the Climate Delegated Act (and the future Environmental Delegated Act)
into quantitative economic performance indicators - the KPIs - which will be publicly
disclosed (e.g. the percentage of environmentally sustainable economic activities in acompany’s turnover or capital expenditure).
This disclosure will help investors and the public to understand the companies’ trajectory
towards sustainability through the annual publication of their KPIs associated withenvironmentally sustainable economic activities. The Delegated Act will therefore increasetransparency in the market and help prevent greenwashing by informing investors aboutcompanies’ environmental performance.
Large financial and non-financial undertakings can use the information disclosed to design
credible green financial products such as green bonds or investment funds and, through the
public disclosures under the Delegated Act, channel investor demand towards sustainableprojects. Market actors who are not covered by the NFRD, such as small and medium size
enterprises (SMEs), can report some or all KPIs on a voluntary basis. Such market
transparency through publishing the percentage of their turnover or investments that is alignedwith the Taxonomy Regulation should help companies to raise the financing for sustainable
activities.
The NFRD, as reviewed by the CSRD, the Regulation on sustainability-related disclosures in
the financial services sector (i.e. Regulation (EU) 2019/2088, the ‘SFDR’)10, and thedisclosures required under the Taxonomy Regulation set out in the Delegated Act, are the

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mitigation or climate change adaptation and for determining whether that economic activity causes nosignificant harm to any of the other environmental objectives (C/2021/2800 final).
Proposal for a Directive of the European Parliament and of the Council amending Directive 2013/34/EU,
Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate
sustainability reporting (COM/2021/189 final).
The Commission proposed to extend the scope of undertakings that are required to publish non-financial
information in its proposal to review the NFRD adopted on 21 April, in particular to include listed SMEs.
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on
sustainability‐ related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1–16).

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central elements of the sustainability reporting regime that underpins the EU’s sustainablefinance strategy.
Under the Taxonomy Regulation, financial market participants covered by the SFDR andcompanies covered by the NFRD are both required to disclose, amongst others, the extent towhich their products or activities, are environmentally sustainable. The Taxonomy Regulationand this Delegated Act, therefore, complement the NFRD and SFDR by providing for acommon reference point for reporting the degree of alignment with sustainable activities in
the Taxonomy Regulation. This Delegated Act has been developed in parallel and should beconsistent with the regulatory technical standards on disclosures developed under the SFDR
and the rules about non-financial reporting provided by the NFRD.
The Taxonomy-related reporting set out in this Delegated Act serves as a basis for various
future and ongoing initiatives in sustainable finance. Reporting under this Delegated Act will
facilitate the development of EU-wide standards for environmentally sustainable financial
products and the creation of labels that recognise compliance with these standards. Notably,
the forthcoming Commission proposals on the EU green bond standard (‘EU GBS’) and EU
ecolabel for financial products are set to use the Taxonomy Regulation. The Taxonomyrelated disclosures will therefore create an entire ecosystem of sustainable finance tools,
including standards, labels and access to a coherent and relevant set of sustainability data,
which are necessary to channel capital towards the investments needed to reach the EU’s
sustainability goals.
The Commission may decide to review the Delegated Act after an appropriate period of timeto ensure that it reflects:–

further developments related to the technical screening criteria set out in Article 19of the Taxonomy Regulation, including any possible revisions of the Taxonomy
Regulation;–

the regulatory technical standards referred to in Articles 8(4), 9(6) and 11(5) 11(4) of
the SFDR relating to the details of the content and presentation of the informationreferred to in Articles 5 and 6 of the Taxonomy Regulation;–

the revision of the NFRD, and–accounting standards provided in Regulation (EC) No 1126/2008.

2.

CONSULTATIONS PRIOR TO THE ADOPTION OF THE ACT

On 28 July 2020, the Commission published an inception impact assessment for a
consultation over a period of six weeks11. There were 78 respondents in total, of which 53.9%
were business associations, 26.9% were companies/business organisations, 9% were nongovernmental organisations and 6.4% were EU citizens.
The overall feedback received by the Commission indicated that the Delegated Act isconsidered as a useful initiative that could help allocate capital to environmentally sustainableeconomic activities. Many respondents expressed a particular interest in the level of detail that
future disclosures will be required to include.

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The inception impact assessment available on: https://ec.europa.eu/info/law/better-regulation/have-yoursay/initiatives/12440-Sustainable-finance-obligation-for-certain-companies-to-publish-non-financialinformation

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The non-financial undertakings consulted considered that the three elements to be disclosed
outlined in the Taxonomy Regulation are appropriate. Financial undertakings highlighted thatcriteria should be consistent, comparable and publicly available.
Many respondents noted a need to avoid administrative burdens and costs linked to datacollection, especially for SMEs. Many also mentioned the challenge of collecting Taxonomy
compliance data within companies and groups and assigning this data to specific businesslines.
Some expressed the view that larger businesses and financial partners falling under the scopeof the NFRD may still ask SMEs that do not fall under the scope of the NFRD to provide
some Taxonomy-related information in order to allow the former to fully comply with thedisclosure obligations under this Delegated Act.
Several responses referred to the importance of ensuring the consistency of disclosure
requirements under various legal acts, in particular the NFRD, SFDR and Taxonomy
Regulation. Market participants also expressed some concerns on the tight timeframe forapplication of this Delegated Act and argued for a phased entry into force. Some also hadquestions about the international context and how to report on global activities in relation to
the Taxonomy Regulation.
In view of the preparation of the Delegated Act, the Commission addressed a call for advice
to the European Supervisory Authorities (‘ESAs’) on 15 September 202012. It invited ESAs in
particular to investigate the content and presentation of relevant KPIs and determine which
methodology should be used by different financial undertakings under their remit to disclose
their degree of Taxonomy-alignment under Article 8 of the Taxonomy Regulation. In
particular, the Commission asked the ESAs to consider how the three KPIs for non-financial
undertakings included in Article 8(2) of the Taxonomy Regulation could be further specified
and to determine the most appropriate methodologies to use. In this respect, ESAs wereinvited to ensure consistency in the advice requested and in the draft technical standards under
Articles 8(4), 9(6) and 11(5) of the SFDR.
Originally, the Commission planned for an impact assessment to accompany this DelegatedAct. This led to the publication of an inception impact assessment. Following a meeting with
the Regulatory Scrutiny Board (RSB) where the call for advice was discussed, a derogationfrom an impact assessment was granted, provided that the Delegated Act is accompanied byan analytical document in the form of a staff working document. This approach wasconsidered more appropriate given that the content of the Delegated Act is based largely on
the advice of the ESAs that launched consultations of relevant stakeholders and performed
cost/benefit assessments13.
The ESAs delivered their advice on 25 February and 1 March, after appropriate public
consultation of stakeholders and assessment of the impacts of the Delegated Act. Summariesof the public feedback may be found in the reports submitted by the ESAs to the Commission.
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The call for advice available on:https://ec.europa.eu/info/sites/info/files/business_economy_euro/banking_and_finance/200915sustainable-finance-taxonomy-call-for-advice_en.pdf
This is in line with the Better Regulation toolbox (tool #9), which states that an impact assessment is notnecessary whenever a Union agency has been mandated to carry out policy-design work and related
analysis, to the extent that the Commission proposal does not substantially deviate from the agency's
recommendations and the Commission services consider its assessment to be of sufficient quality.
The ESMA advice is available on:

4ENThe content of the Delegated Act developed by the Commission follows to a large extent the
ESAs’ advice. The draft Delegated Act was published on the Better Regulation portal for athree-week feedback period between 7 May and 2 June 2021. In total, 162 stakeholders
provided feedback. The draft Delegated Act was also discussed with the Platform on
Sustainable Finance on 12 May 2021. Furthermore, it was presented to and discussed with theMember States Expert Group and with observers from the European Parliament on 28 April
and 3 June 2021. The Commission also sought additional feedback from the ESAs.
The feedback confirmed the overall support for the Delegated Act, while revealing someconcerns. Non-financial undertakings welcomed the 1-year phase-in period for the disclosures
but several expressed concerns regarding the proportionality of some of the information
requested. Financial undertakings were broadly supportive of the disclosures applicable tothem, but several commented again on the necessity and proportionality of some of theinformation requirements (e.g. ratios for non-lending activities of banks). Many welcomed thephase-in for disclosures regarding sovereign and non-NFRD (including SME) exposures andinvestments, but several favoured shortening the phase-in period. While a number of
responses favoured the voluntary inclusion of (specific parts of) SMEs exposures, others wereconcerned about the ability to collect such data, the creation of undue administrative burden
for SMEs and their inability to provide such data and favoured the exclusion of SME
exposures from the numerator and the denominator. A large number of responses also
recommended that reliable taxonomy-alignment information otherwise obtained on exposures
to non-EU undertakings and for use-of-proceeds instruments regarding sovereigns should not
be excluded from the numerator of the green asset ratio (GAR) for banks during the phase-in
period.
Based on the feedback, a number of adjustments were made to the Delegated Act. These aresummarised in Annex III of the accompanying staff working document, together with a more
extensive summary of the feedback.
3.

LEGAL ELEMENTS OF THE DELEGATED ACT

The Delegated act is based on Article 8(4) of the Taxonomy Regulation.
Article 1 provides a limited list of definitions that are necessary for formulating theRegulation’s rules.
Article 2 specifies the content and presentation of the information that non-financial
undertakings should disclose under Article 8(1) and (2) of the Taxonomy Regulation.
Article 3 specifies the content and presentation of the information that asset managers should
disclose under Article 8(1) of the Taxonomy Regulation.
Article 4 specifies the content and presentation of the information that credit institutions
should disclose under Article 8(1) of the Taxonomy Regulation.

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https://www.esma.europa.eu/sites/default/files/library/esma30-379-471_final_report__advice_on_article_8_of_the_taxonomy_regulation.pdf
The EIOPA advice is available on:https://www.eiopa.europa.eu/sites/default/files/publications/advice/eiopa-21-184-sustainability-nonfinancial-reporting-advice-art8-taxonomy-regulation.pdf
The EBA advice is available on:https://www.eba.europa.eu/sites/default/documents/files/document_library/About%20Us/Missions%20an
d%20tasks/Call%20for%20Advice/2021/CfA%20on%20KPIs%20and%20methodology%20for%20discl
osures%20under%20Article%208%20of%20the%20Taxonomy%20Regulation/963616/Report%20%20Advice%20to%20COM_Disclosure%20Article%208%20Taxonomy.pdf

5ENArticle 5 specifies the content and presentation of the information that investment firms
should disclose under Article 8(1) of the Taxonomy Regulation.
Article 6 specifies the content and presentation of the information that insurance andreinsurance undertakings should disclose under Article 8(1) of the Taxonomy Regulation.
Article 7 sets out common rules for the disclosures of financial undertakings concerning thescope of disclosures and the calculation of their KPIs as regards their exposures to nonfinancial undertakings that are not covered by the scope of NFRD and are not required todisclose information under the Delegated Act.
Article 8 sets out common rules for the disclosures of non-financial and financial
undertakings concerning the location of disclosures, comparative information and thecurrency for calculating the KPIs.
Article 9 provides for reviewing the application of this Regulation, in particular with theregards to the treatment in the KPIs by financial undertakings of sovereign exposures andexposures to undertakings not subject to NFRD.
Article 10 specifies the dates of the Delegated Act’s entry into force and application.

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COMMISSION DELEGATED REGULATION (EU) …/...
of 6.7.2021
supplementing Regulation (EU) 2020/852 of the European Parliament and of theCouncil by specifying the content and presentation of information to be disclosed byundertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning
environmentally sustainable economic activities, and specifying the methodology tocomply with that disclosure obligation(Text with EEA relevance)

THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2020/852 of the European Parliament and of the Council of
18 June 2020 on the establishment of a framework to facilitate sustainable investment, andamending Regulation (EU) 2019/208817, and in particular Article 8(4), thereof,
Whereas:(1)

Article 8(1) of Regulation (EU) 2020/852 requires undertakings that are subject to
Articles 19a or 29a of Directive 2013/34/EU of the European Parliament and of theCouncil18 to disclose how and to what extent their activities are associated withenvironmentally sustainable economic activities. Article 8(2) of Regulation (EU)2020/852 requires non-financial undertakings to disclose information on the
proportion of the turnover, capital expenditure and operating expenditure (‘keyperformance indicators’) of their activities related to assets or processes associatedwith environmentally sustainable economic activities. That provision, however, does
not specify equivalent key performance indicators for financial undertakings, that iscredit institutions, asset managers, investment firms and insurance and reinsurance
undertakings. It is therefore necessary to supplement Article 8 of Regulation (EU)2020/852 to specify the key performance indicators for financial undertakings andfurther specify the content and presentation of the information to be disclosed by all
undertakings and the methodology to comply with that disclosure.

(2)

It is necessary to ensure a uniform application of the disclosure requirements laid
down in Article 8(2) of Regulation (EU) 2020/852 by non-financial undertakings thatare subject to Articles 19a or 29a of Directive 2013/34/EU. Rules should therefore belaid down to further specify the content and presentation of the information required
by Article 8 of Regulation (EU) 2020/852, including the methodology to comply withthose rules. To enable investors and the public to properly assess the proportion of

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Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on
sustainability‐ related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1).
Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual
financial statements, consolidated financial statements and related reports of certain types ofundertakings, amending Directive 2006/43/EC of the European Parliament and of the Council andrepealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

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environmentally sustainable economic activities (‘Taxonomy-aligned activities’) of
non-financial undertakings, those undertakings should be required to disclose which of
their economic activities are Taxonomy-aligned. In addition, it is necessary to disclose
to which environmental objectives those activities contribute substantially. Nonfinancial undertakings should therefore also provide for a breakdown in the key
performance indicators of the proportion of Taxonomy-aligned activities based oneach environmental objective to which those activities contribute substantially.

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(3)

Turnover, capital expenditure and operating expenditure are irrelevant for assessing
the environmental sustainability of financial activities, including lending, investment
and insurance. The three key performance indicators for non-financial undertakings
laid down in Article 8(2) of Regulation (EU) 2020/852 are therefore not appropriate to
demonstrate to what extent the economic activities of financial undertakings are Taxonomy-aligned. It is therefore necessary to provide specific key performanceindicators and calculation methodologies for such key performance indicators forfinancial undertakings. To support markets’ understanding of those key performanceindicators, any disclosures of those key performance indicators should beaccompanied by qualitative information to enable financial undertakings to explain
their determination of key performance indicators.

(4)

Investors and the public should be able to assess the proportion of Taxonomy-aligned
economic activities pursued by investee undertakings. Asset managers should
therefore disclose the proportion of investments they made in Taxonomy-aligned
economic activities in the value of all investments managed by them resulting fromboth their collective and individual portfolio management activities. That proportionof Taxonomy-aligned investments should be calculated as the proportion of
Taxonomy-aligned economic activities of investee undertakings which results fromtheir respective key performance indicators, because those key performance indicatorsreflect the environmental performance of investee undertakings.

(5)

The main activity of credit institutions is the provision of financing to and investmentsin the real economy. The exposures of credit institutions to undertakings that theyfinance or invest in are reflected as assets in the credit institutions’ balance sheet. The
main key performance indicator for credit institutions that are subject to the disclosure
obligations laid down in Articles 19a and 29a of Directive 2013/34/EU should be thegreen asset ratio (GAR), which shows the proportion of exposures related to
Taxonomy-aligned activities compared to the total assets of those credit institutions.
The GAR should relate to the credit institutions’ main lending and investment
business, including loans, advances and debt securities, and to their equity holdings toreflect the extent to which those institutions finance Taxonomy-aligned activities.

(6)

Credit institutions also perform other commercial services and activities than theprovision of financing. Those activities generate fees and commission income. It isnecessary to enable investors and the public to assess the proportion of Taxonomyaligned economic activities pursued by the recipients of those services. Credit
institutions that are subject to the disclosure obligations laid down in Articles 19a and29a of Directive 2013/34/EU should therefore also disclose what proportion of theirfees and commission income is derived from commercial services and activities thatare associated with Taxonomy-aligned economic activities of their clients.

(7)

Credit institutions may manage underlying assets or provide financial guarantees,
leading to off-balance-sheet exposures. To enable investors and the public to assess
the proportion of Taxonomy-aligned activities pursued by credit institutions, for those8EN

off-balance-sheet exposures, credit institutions that are subject to the disclosure
obligations laid down in Articles 19a and 29a of Directive 2013/34/EU should disclose
the proportion of Taxonomy-aligned activities in the underlying assets that they
manage or in the obligations the performance of which they guarantee.
(8)

In addition to disclosures concerning their banking book, credit institutions that are
subject to the disclosure obligations laid down in Articles 19a and 29a of Directive
2013/34/EU should also disclose separately the overall composition of their total
assets, including their trading book, and any trends and limits in terms of climate andenvironmental risks. Credit institutions with a significant trading activity should be
subject to obligations for more granular disclosures for their trading book.

(9)

It is important to provide investors and the public with a complete overview of whichinvestments an investment firm that is subject to the disclosure obligations laid downin Articles 19a and 29a of Directive 2013/34/EU has made in Taxonomy-aligned
activities. The key performance indicators for such investment firms should therefore
cover both their dealing on own account and their dealing on behalf of clients. The
disclosure of the key performance indicator for dealing on own account should reflect
which proportion of the total assets is composed of assets related to Taxonomy-aligned
activities. That indicator should focus on the investment firms’ investments, including
debt securities and equity instruments in investee companies. The key performanceindicator for the environmental sustainability of investment firms’ services andactivities on behalf of all their clients should be based on the revenue in the form offees, commissions and other monetary benefits that investment firms generate fromtheir investment services and activities carried out for their clients.

(10)

The key performance indicators for insurance and reinsurance undertakings that are
subject to the disclosure obligations laid down in Articles 19a and 29a of Directive
2013/34/EU should capture their non-life underwriting activities and investment
policy that are part of their business model to show the extent to which those activities
are aligned with the Taxonomy. One key performance indicator should relate to theinvestment policy of such insurance and reinsurance undertakings for the funds
collected from their underwriting activities and should show the proportion of assets
invested in Taxonomy-aligned activities in their overall assets. A second indicator
should relate to the underwriting activities themselves and show what proportion of
the overall non-life underwriting activities is composed of non-life underwriting
activities that relate to climate adaptation and which are performed in accordance with
Climate Delegated Act19 (‘Climate Delegated Act’).

(11)

Financial undertakings that are subject to the disclosure obligations laid down in
Articles 19a and 29a of Directive 2013/34/EU should not take into account the
exposure to, or investments in, non-financial undertakings that are not subject to
Articles 19a and 29a of Directive 2013/34/EU in the calculation of the numerator of
key performance indicators. An inclusion of such exposures in the numerator may beconsidered at the time of review of this Delegated Act which will be accompanied by
an impact assessment. Those non-financial undertakings may still decide to voluntarily
disclose their key performance indicators, either to have access to environmentally

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Commission Delegated Regulation(EU) …/... supplementing Regulation (EU) 2020/852 of the European
Parliament and of the Council by establishing the technical screening criteria for determining theconditions under which an economic activity qualifies as contributing substantially to climate change
mitigation or climate change adaptation and for determining whether that economic activity causes nosignificant harm to any of the other environmental objectives (C/2021/2800 final).

9ENsustainable finance as part of specific eco-labelling schemes and environmentally
sustainable financial products, or as part of their overall business strategy based on
environmental sustainability.
(12)

In view of the entry into force and application of Climate Delegated Act by the end of2021 and material difficulties for assessing compliance of economic activities in 2022with technical screening criteria laid down in that Delegated Regulation for theprevious reporting year, the application of this Regulation in 2022 should be limited tocertain elements and qualitative reporting, with the remaining provisions starting toapply from 1 January 2023 for non-financial undertakings and from 1 January 2024
for financial undertakings. Moreover, the key performance indicators of credit
institutions related to their trading book and commission and fees for othercommercial services and activities than the provision of financing should apply from 1
January 2026.

(13)

Due to the current lack of an appropriate calculation methodology, exposures tocentral governments, central banks and supranational issuers should be excluded fromthe calculation of the numerator and denominator of key performance indicators.
Financial undertakings may, on a voluntary basis, provide information in relation to
exposures to taxonomy aligned bonds and taxonomy aligned debt securities that areissued by central governments, central banks or supranational issuers. There should bea review by 30 June 2024 that should evaluate the possibility of inclusion of such
exposures in the key performance indicators.

HAS ADOPTED THIS REGULATION:
Article 1
Definitions
For the purposes of this Regulation, the following definitions apply:

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(1)

‘environmental objective’ means one of the environmental objectives laid down in
Article 9 of Regulation (EU) 2020/852;(2)‘Taxonomy-aligned economic activity’ means an economic activity that complies
with the requirements laid down in Article 3 of Regulation (EU) 2020/852;(3)‘transitional economic activity’ means an economic activity that complies with therequirements laid down in Article 10(2) of Regulation (EU) 2020/852;(4)‘enabling economic activity’ means an economic activity that complies with therequirements laid down in Article 16 of Regulation (EU) 2020/852;(5)‘taxonomy-eligible economic activity’ means an economic activity that is describedin the delegated acts adopted pursuant to Article 10(3), Article 11(3), Article 12(2),Article 13(2), Article 14(2), and Article 15(2), of Regulation (EU) 2020/852,
irrespective of whether that economic activity meets any or all of the technicalscreening criteria laid down in those delegated acts;(6)‘taxonomy-non-eligible economic activity’ means any economic activity that is notdescribed in the delegated acts adopted pursuant to Article 10(3), Article 11(3),Article 12(2), Article 13(2), Article 14(2) and Article 15(2), of Regulation (EU)2020/852;(7)‘asset manager’ means an undertaking that is subject to the disclosure obligations laid
down in Articles 19a and 29a of Directive 2013/34/EU and is either of the following:

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(a)

an AIFM as defined in Article 4(1), point (b), of Directive 2011/61/EU of theEuropean Parliament and of the Council20;(b)a management company as defined in Article 2(1), point (b), of Directive
2009/65/EC of the European Parliament and of the Council21;(c)

an investment company authorised in accordance with Articles 27, 28 and 29
of Directive 2009/65/EC and that has not designated for its management a
management company authorised in accordance with Articles 6, 7 and 8 of that
Directive.

(8)‘financial undertaking’ means an undertaking that is subject to the disclosure
obligations laid down in Articles 19a and 29a of Directive 2013/34/EU and is anasset manager, a credit institution as defined in Article 4(1), point (1), of Regulation(EU) No 575/2013 of the European Parliament and of the Council 22, an investment
firm as defined in Article 4(1), point (2), of Regulation (EU) No 575/2013, an
insurance undertaking as defined in Article 13, point (1), of Directive 2009/138/EC
of the European Parliament and of the Council23, or a reinsurance undertaking as
defined in Article 13, point (4) of Directive 2009/138/EC;(9)‘non-financial undertaking’ means an undertaking that is subject to the disclosure
obligations laid down in Articles 19a and 29a of Directive 2013/34/EU and is not afinancial undertaking as defined in point (8);(10)‘taxonomy-aligned insurance or reinsurance activity’ means an insurance orreinsurance activity that complies with the criteria laid down in Sections 10.1. and10.2. of Annex II to Climate Delegated Act24.
Article 2
Disclosures by non-financial undertakings

1.

Non-financial undertakings shall disclose the information referred to in Article 8,paragraphs 1 and 2, of Regulation (EU) 2020/852 as specified in Annex I to thisRegulation.

2.

The information referred to in paragraph 1 shall be presented in tabular form byusing the templates set out in Annex II to this Regulation.

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Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative
Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC)No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).
Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordinationof laws, regulations and administrative provisions relating to undertakings for collective investment intransferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32).
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on
prudential requirements for credit institutions and investment firms and amending Regulation (EU) No
648/2012 (OJ L 176, 27.6.2013, p. 1).
Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on thetaking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009,p. 1).
COMMISSION DELEGATED REGULATION (EU) …/... supplementing Regulation (EU) 2020/852 of
the European Parliament and of the Council by establishing the technical screening criteria for
determining the conditions under which an economic activity qualifies as contributing substantially to
climate change mitigation or climate change adaptation and for determining whether that economic
activity causes no significant harm to any of the other environmental objectives (C/2021/2800 final).

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Article 3
Disclosures by asset managers
1.

Asset managers shall disclose the information referred to in Article 8(1) ofRegulation (EU) 2020/852 as specified in Annexes III and XI to this Regulation.

2.

The information referred to in paragraph 1 shall be presented in tabular form byusing the template set out in Annex IV to this Regulation.
Article 4
Disclosures by credit institutions

1.

Credit institutions shall disclose the information referred to in Article 8(1) ofRegulation (EU) 2020/852 as specified in Annexes V and XI to this Regulation.

2.

The information referred to in paragraph 1 shall be presented in tabular form byusing the template set out in Annex VI to this Regulation.
Article 5
Disclosures by investment firms

1.

Investment firms shall disclose the information referred to in Article 8(1) ofRegulation (EU) 2020/852 as specified in Annexes VII and XI to this Regulation.

2.

The information referred to in paragraph 1 shall be presented in tabular form byusing the template set out in Annex VIII to this Regulation.
Article 6
Disclosures by insurance and reinsurance undertakings

1.

Insurance and reinsurance shall disclose the information referred to in Article 8(1) ofRegulation (EU) 2020/852 as specified in Annexes IX and XI to this Regulation.

2.

The information referred to in paragraph 1 shall be presented in tabular form byusing the templates set out in Annex X to this Regulation.
Article 7
Disclosure rules common to all financial undertakings

EN1.

The exposures to central governments, central banks and supranational issuers shallbe excluded from the calculation of the numerator and denominator of key
performance indicators of financial undertakings.

2.

Derivatives shall be excluded from the numerator of key performance indicators offinancial undertakings.

3.

Exposures to undertakings that are not obliged to publish non-financial information
pursuant to Article 19a or 29a of Directive 2013/34/EU shall be excluded from thenumerator of key performance indicators of financial undertakings.

4.

Without prejudice to paragraph 1, environmentally sustainable bonds or debt
securities with the purpose of financing specific identified activities that are issued
by an investee undertaking shall be included in the numerator of key performanceindicators up to the full value of Taxonomy-aligned economic activities that theproceeds of those bonds and debt securities finance, on the basis of information
provided by the investee undertaking.

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ENExposures whose purpose is not to finance specific identified activities shall be
included in the numerator weighted by the turnover KPI and CapEx KPI of the issuer
in accordance with the methodology laid down in Annexes III, V, VII, and IX.
Where an investee undertaking has issued the environmentally sustainable bonds or
debt securities with the purpose of financing specific identified activities, financial
undertakings shall discount the KPI of the investee undertaking accordingly to avoid
double counting.
5.

Where the technical screening criteria laid down in the delegated acts adopted
pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU)2020/852 are amended, special purpose loans and the instruments referred toparagraph 4 held by financial undertakings that finance Taxonomy aligned economic
activities or assets shall in the absence of alignment of the financed economic
activities or assets with the amended technical screening criteria be reported as such
under this Regulation until five years after the date of application of the delegatedacts that amend those technical screening criteria.

6.

Financial undertakings shall provide for a breakdown in the numerator whereapplicable and denominator of the key performance indicators for:

7.

(a)

exposures to and investments in non-financial undertakings;(b)

exposures to and investments in financial undertakings;(c)exposures to and investments in non-financial undertakings established in theUnion that are not subject to an obligation to publish a non-financial statement
pursuant to Articles 19a and 29a of Directive 2013/34/EU ;(d)exposures to and investments in financial undertakings established in the Union
that are not subject to an obligation to publish a non-financial statement
pursuant to Articles 19a and 29a of Directive 2013/34/EU referred to inparagraph 2;(e)exposures to and investments in non-financial undertakings established in athird country that are not subject to an obligation to publish a non-financial
statement pursuant to Articles 19a and 29a of Directive 2013/34/EU;(f)

exposures to and investments in financial undertakings referred established in athird country that are not subject to an obligation to publish a non-financial
statement pursuant to Articles 19a and 29a of Directive 2013/34/EU;(g)

exposures to and investments in derivatives;(h)other exposures and investments.

Financial undertakings may use estimates for assessing the Taxonomy-alignment of
their exposures to undertakings referred to in paragraph (6), points (e) and (f), where
those financial undertakings are able to demonstrate compliance with all criteria of
Article 3 of Regulation (EU) 2020/852, except with the criteria laid down in Article
3, point (b) of that Regulation.
Financial undertakings shall formalise, document and make public the methodology
upon which such estimations are based, including the approach and researchmethodology, the main assumptions and precautionary principles used.
Financial undertakings shall disclose:

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(a)

the proportion of Taxonomy-aligned exposures based on estimates separatelyfrom their key performance indicators disclosed pursuant to this Regulation;(b)

the measures taken and the period of time necessary to demonstrate compliancewith the criteria laid down in Article 3, point (b) of Regulation (EU) 2020/852.

Article 8
Disclosure rules common to all financial undertakings and non-financial undertakings
1.

Financial undertakings and non-financial undertakings shall include all additional
disclosures accompanying the key performance indicators laid down in Annexes I,
III, V, VII, XI in the same parts of the non-financial statement that contains thoseindicators, or shall provide cross-references to the parts of the non-financial
statements that contain those indicators.

2.

Information disclosed in accordance with this Regulation shall cover the annual
reporting period from the previous calendar year of the date of disclosure.

3.

Financial undertakings and non-financial undertakings shall provide in the nonfinancial statement the key performance indicators covering the previous annual
reporting period.
For the purposes of this paragraph, the first annual reporting period shall cover theyear 2023.

4.

Financial undertakings and non-financial undertakings shall in their disclosures, use
the same currency as in their financial statements.
Financial undertakings shall use the most recently available data and key
performance indicators of their counterparties to calculate their own key performanceindicators.

5.

The key performance indicators shall cover only the objectives of climate change
mitigation and climate change adaptation until twelve months after the date ofapplication of the delegated regulations that contain the technical screening criteria
for the other environmental objectives and that have been adopted pursuant to Article
12(2), Article 13(2), Article 14(2) and Article 15(2) of Regulation (EU) 2020/852.
Article 9
Review

1.

2.

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By 30 June 2024, the Commission shall review the application of this Regulation.
The Commission shall assess in particular the need for any further amendments withregard to the inclusion of:(a)exposures to central governments and central banks in the numerator anddenominator of key performance indicators of financial undertakings;(b)

exposures to undertakings that do not publish a non-financial statement
pursuant to Articles 19a or 29a of Directive 2013/34/EU in the numerator of
key performance indicators of financial undertakings.

The review for SME exposures will be accompanied by an impact assessment
assessing the administrative burden, access to finance and the potential impacts on
SMEs of a possible extension to cover SMEs exposures that are not covered by thisDelegated Regulation or provide such information voluntarily.

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3.

The exposures to and investments in undertakings that do not publish non-financial
information pursuant to Articles 19a and 29a of Directive 2013/34/EU and Article 8
of Regulation (EU) 2020/852, but that provide such equivalent information
voluntarily, may be included in the numerators of key performance indicators offinancial undertakings from 1 January 2025 subject to a positive assessment referred
to in paragraph (2).
Article 10
Entry into force and application

1.

From 1 January 2022 until 31 December 2022, non-financial undertakings shall only
disclose the proportion of Taxonomy-eligible and Taxonomy non-eligible economic
activities in their total turnover, capital and operational expenditure and thequalitative information referred to in Section 1.2. of Annex I relevant for thisdisclosure.

2.

From 1 January 2022 until 31 December 2023, financial undertakings shall only
disclose:(a)the proportion in their total assets of exposures to Taxonomy non-eligible andTaxonomy-eligible economic activities;(b)

the proportion in their total assets of the exposures referred to in Article 7,paragraphs 1 and 2;(c)the proportion in their total assets of the exposures referred to in Article 7(3);(d)

the qualitative information referred to in Annex XI.

Credit institutions shall also disclose the proportion of their trading portfolio and on
demand inter-bank loans in their total assets.
Insurance and reinsurance undertakings shall also disclose the proportion of
Taxonomy-eligible and Taxonomy non-eligible non-life insurance economic
activities.
3.

The key performance indicators of non-financial undertakings, including any
accompanying information to be disclosed pursuant to Annex I and II of thisRegulation, shall be disclosed from 1 January 2023.

4.

The key performance indicators of financial undertakings, including any
accompanying information to be disclosed pursuant to Annex III, V, VII, IX, XI ofthis Regulation, shall be disclosed from 1 January 2024.
Sections 1.2.3. and 1.2.4. of Annex V shall apply from 1 January 2026.

This Regulation shall enter into force on the twentieth day following that of its publication in
the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 6.7.2021

For the Commission
The President
Ursula VON DER LEYEN

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