Compliance Briefing — January 1, 2022
Large EU public-interest entities began reporting climate-aligned KPIs under the EU Taxonomy Regulation on 1 January 2022, requiring detailed eligibility and alignment calculations.
Executive briefing: 1 January 2022 triggered the first EU Taxonomy disclosure obligations for climate change mitigation and adaptation activities under Regulation (EU) 2020/852 and Delegated Regulation (EU) 2021/2178. In-scope companies must publish eligibility and alignment KPIs for turnover, CapEx, and OpEx.
Key compliance checkpoints
- Eligibility assessment. Map economic activities to the taxonomy classification to determine eligibility under the climate objectives.
- Alignment calculations. Evaluate substantial contribution, do-no-significant-harm, and minimum safeguards criteria to calculate aligned KPIs.
- Disclosure format. Follow Annex II templates for narrative and quantitative disclosures in management reports and non-financial statements.
Operational priorities
- Data collection. Integrate taxonomy attributes into finance and sustainability systems to capture revenue and investment data at activity level.
- Control environment. Establish internal controls and audit trails over taxonomy calculations, especially for board sign-off and assurance readiness.
- Timeline management. Coordinate cross-functional teams to deliver taxonomy disclosures alongside annual financial reporting cycles.
Enablement moves
- Implement taxonomy tagging within ERP and planning tools to automate KPI aggregation.
- Develop reconciliation workpapers linking taxonomy metrics to audited financial statements.
- Provide training for finance, sustainability, and investor relations teams on interpreting technical screening criteria.
Sources
- Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment
- Commission Delegated Regulation (EU) 2021/2178
Zeph Tech streamlines EU Taxonomy reporting with eligibility mapping, KPI automation, and governance controls for finance teams.