EU Taxonomy Reporting Review on Aligned Investments

This document is a report that examines the EU Taxonomy, a classification system aimed at guiding companies and investors in making sustainable investment decisions. The report details the progress of EU companies in voluntarily reporting their Taxonomy-aligned activities for the 2022 financial year, with a focus on data collected for FY2024. It highlights that aligned capital expenditures (capex) have exceeded USD 900 billion over the past three years, with a notable increase in reporting driven by the Corporate Sustainability Reporting Directive (CSRD). The report outlines key findings, including the rise in average aligned capex levels for non-financial companies and the varying alignment levels across different sectors and countries. It also discusses the implications of proposed changes to reporting thresholds under CSRD and measures to simplify Taxonomy application. The report serves as a continuation of tracking progress on EU Taxonomy disclosure and corporate investments that support a sustainable economy.