TheEU Taxonomyand theESRS digital taxonomyserve different purposes in sustainability reporting:
EU Taxonomyis a classification system that identifiesenvironmentally sustainable economic activitiesand establishes criteria for determining their contribution to environmental objectives. It is primarily used to guide investment decisions and financial disclosures.
ESRS Digital Taxonomyis a structureddigital frameworkthat ensures sustainability disclosures aremachine-readable, standardized, and comparableunder theCorporate Sustainability Reporting Directive (CSRD).
Key Differences:Aspect
EU Taxonomy
ESRS Digital Taxonomy
Purpose
Classifies sustainable economic activities
Enables structured digital sustainability reporting
Scope
Environmental focus on investments & economic activities
Comprehensive reporting across environmental, social, and governance (ESG) areas
Users
Financial institutions, investors
Reporting entities, auditors, regulators
Regulation
UnderEU Taxonomy Regulation (2020/852)
UnderCSRD (Directive 2022/2464/EU)
References:
EU Platform on Sustainable Finance Report: Simplifying the EU Taxonomy
Commission Delegated Regulation (EU) 2023/2772
