SUMMARY

The Commission has published the long awaited Taxonomy Delegated Act simplifying requirements under Omnibus I. While the Omnibus I simplification of the CSDDD and CSRD was concluded in December, changes to Taxonomy were pending Parliament and Council scrutiny, which began in July. Despite calls for rejection, changes were adopted, confirming, among other things, the exemption from Taxonomy eligibility assessment for immaterial activities—a 10% threshold.

The Commission has also published an FAQ to clarify the changes and a EU Taxonomy Navigator to support compliance.

MORE DETAILS

1) Which companies are required to report and when:

• The Taxonomy Regulation follows the same scope as CSRD. Therefore, the revised CSRD thresholds introduced by Omnibus I will also determine which companies must comply with the Taxonomy Regulation.‍
• The Delegated Act has changed Taxonomy reporting requirements. However, for the 2025 financial year (with reports published in 2026), the reporting undertaking can choose between two options: ‍
• They can apply the version of the reporting rules as amended by the Omnibus Delegated Act and that enter into application as from 1 January 2026.
• They can apply the version of the reporting rules that were applicable until 31 December 2025. If the reporting undertaking chooses to apply the reporting rules as applicable until 31 December 2025 (i.e. without the amendments of the Omnibus Delegated Act), it must apply those rules in full.
• Reporting undertakings should include a statement in the contextual information of their sustainability report that specifies which set of reporting rules they applied when reporting on the 2025 financial year.

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2) Main changes agreed:

• Companies are not required to evaluate the Taxonomy eligibility or alignment of activities that do not have a material financial impact on their operations.
• For non-financial undertakings, an activity is regarded as immaterial where it contributes less than 10% to overall turnover, capital expenditure (CapEx) or operating expenditure (OpEx). The aim is to reduces compliance costs and allow  companies to prioritise reporting and investment linked to their main business activities and transition objectives.
• Where operational expenditure is not material to the business model, non-financial companies are relieved from assessing Taxonomy alignment for such expenditure in its entirety.
• Reporting obligations are further simplified through streamlined Taxonomy templates, resulting in a reduction of required data points of 64% for non-financial companies.
• The ‘do no significant harm’ requirements concerning pollution prevention and control (particularly those related to chemical use and presence) are also simplified.

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3) EU Taxonomy navigator to help with compliance

The Commission created an educational and user-friendly website offering a series of online tools to help users better understand the EU taxonomy and support companies in their reporting obligations.

The EU taxonomy navigator offers four tools that will help you navigate the EU taxonomy:

1. EU taxonomy compass: a visual representation of sectors, activities and criteria included in the EU Taxonomy delegated acts.
2. EU taxonomy calculator: a step-by-step guide on reporting obligations.
3. FAQs repository: an overview of questions and answers on the EU taxonomy and its delegated acts.
4. ‍EU taxonomy user guide: a guidance document on the Taxonomy for non-experts.

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NEXT STEPS

While this Taxonomy Delegated Act will officially enter into force at the end of January, it is already applicable as of 1 January 2026. For Financial Year 2026, companies can nonetheless choose to apply the old reporting rules applicable until 31 December 2025.