The EU Taxonomy is an EU-wide classification system that defines which economic activities can be considered environmentally sustainable. It creates a common “rulebook” for sustainability claims by setting clear criteria for when an activity genuinely supports EU environmental objectives—helping reduce greenwashing and improving comparability for investors, customers, and procurement teams.
What Is the EU Taxonomy?
The EU Taxonomy applies to economic activities (not entire companies) and labels activities as Taxonomy-eligible (covered by the Taxonomy list) and potentially Taxonomy-aligned (meeting all required criteria). It is supported by technical screening criteria defined through EU delegated acts.
Why the EU Taxonomy Matters
For EV charging and e-mobility businesses, the EU Taxonomy increasingly influences how customers, investors, and public buyers evaluate sustainability.
– Supports tender and procurement requirements where buyers ask for structured sustainability proof
– Improves credibility of sustainability claims by linking them to defined thresholds
– Enables consistent reporting and benchmarking across suppliers and projects
– Helps capital flow toward infrastructure and technologies aligned with EU climate and environmental goals
The Six Environmental Objectives
An activity is assessed against EU Taxonomy environmental objectives, which include:
– Climate change mitigation
– Climate change adaptation
– Sustainable use and protection of water and marine resources
– Transition to a circular economy
– Pollution prevention and control
– Protection and restoration of biodiversity and ecosystems
Core Alignment Criteria
To be Taxonomy-aligned, an activity must meet four core conditions:
– Make a substantial contribution to at least one environmental objective
– Do no significant harm (DNSH) to the other objectives
– Comply with minimum safeguards (minimum social and governance safeguards)
– Meet the EU’s technical screening criteria for that activity
Technical Screening Criteria and Delegated Acts
The detailed thresholds and conditions for alignment are defined through delegated acts (e.g., for climate mitigation and adaptation), which specify what performance levels or safeguards must be met for each activity category.
EU Taxonomy Reporting and Key KPIs
For reporting, companies typically disclose the share of their activities that are Taxonomy-eligible and Taxonomy-aligned, commonly using financial KPIs such as:
– Turnover (revenue) associated with Taxonomy-aligned activities
– CapEx (capital expenditure) aligned with Taxonomy criteria
– OpEx (operational expenditure) aligned with Taxonomy criteria
How the EU Taxonomy Relates to EV Charging Projects
In EV charging infrastructure, EU Taxonomy discussions often connect to how projects are designed, documented, and operated.
– Evidence-based sustainability documentation (site design choices, energy strategy, lifecycle considerations)
– Alignment with broader sustainability reporting and investment due diligence
– Stronger focus on traceability: what is installed, how it performs, and how impacts are reported (energy, emissions, and safeguards)
Limitations to Consider
– The Taxonomy assesses activities, so alignment can differ across product lines, services, and project types
– Comparisons only work when the same scope, assumptions, and criteria versions are used
– Taxonomy alignment requires documentation and evidence, not just high-level sustainability claims
Related Glossary Terms
ESG (Environmental, Social, Governance)
ESG Reporting
ESG Compliance
Environmental Product Declaration (EPD)
Carbon Footprint
Emission Factors
Environmental Compliance
Energy Analytics