An EU subsidiary in CSRD scope
Reports the three Article 8 KPIs itself.
More than €450m turnover and more than 1,000 employees.EU law · reaching UK groups
The EU Taxonomy for UK companies
The EU Taxonomy is the EU’s legal test for which economic activities count as environmentally sustainable.
It reaches a UK group only through its EU subsidiaries that report under the CSRD, which then disclose what share of turnover, CapEx and OpEx comes from sustainable activities.
The UK has no taxonomy of its own, since HM Treasury dropped one on 15 July 2025.
What it is
What is the EU Taxonomy?
A Regulation that defines an environmentally sustainable activity by four conditions and six objectives.
Article 3Explore
Article 3
Substantial contribution
To one or more of six objectives: climate mitigation, adaptation, water, circular economy, pollution, biodiversity.
Article 3
No significant harm
To any of the other objectives, judged over the life cycle.
Article 3
Minimum safeguards
Procedures aligned with the OECD Guidelines and the UN Guiding Principles.
Article 3
Technical screening criteria
Set by the Commission in delegated acts; no criteria, no alignment.
UK groups
Does the EU Taxonomy apply to UK companies?
Only through EU entities: a UK plc meets it through its EU subsidiaries, never in its own right under Article 8.
Article 8 binds any undertaking that publishes non-financial information under Articles 19a or 29a of the Accounting Directive (Art 8(1)).
Those articles now catch undertakings with more than €450 million net turnover and more than 1,000 employees, so the Taxonomy’s reach shrank without a word of it changing (Directive (EU) 2026/470).
Which EU subsidiaries of a UK group report under CSRD is on CSRD reporting requirements, and the non-EU group report on ESRS 40a.
A UK group with EU subsidiaries
The subsidiary takes the exemption
The KPIs for it must still be published.
In its management report or the parent’s consolidated report.The Article 40a group report
Its text does not mention the Taxonomy Regulation.
The third-country standards were not checked.One group
What does this mean for one UK group?
A UK group whose German subsidiary has €600m turnover and 1,400 staff reports three KPIs through that subsidiary.
It is an illustration, not a real group.
If the same group’s only EU subsidiary had 400 staff, it would be outside CSRD scope and no Article 8 duty would arise.
- 1
Is the UK parent in scope?
Not under Article 8: the duty follows Articles 19a and 29a, which bind EU undertakings (Art 8(1)).
- 2
Is the German subsidiary?
Yes, on these figures: more than €450 million turnover and more than 1,000 employees (Art 19a).
- 3
Can it use the exemption?
Only if the KPIs for the subsidiary are still published, in its management report or the parent’s consolidated report (Art 19a(9)).
- 4
What does it report?
Three proportions: turnover, CapEx and OpEx from aligned activities (Art 8(2)).
- 5
Can one subsidiary report for all?
Until 6 January 2030, Member States must allow one EU subsidiary to report for all of them (Art 48i).
The KPIs
What do the three KPIs measure?
The share of turnover, CapEx and OpEx linked to activities that meet all four conditions.
| KPI | What Article 8(2) measures | Notes |
|---|---|---|
| Turnover | Turnover from products or services associated with sustainable activities | Method and templates in DR 2021/2178 Annexes I and II |
| CapEx | Capital expenditure related to assets or processes associated with sustainable activities | Same method; the 10% assessment relief applies per KPI |
| OpEx | Operating expenditure related to those assets or processes | ESMA’s preliminary preference is to limit it to R&D: a consultation, not law |
Banks, insurers and asset managers report different KPIs, such as a bank’s green asset ratio (DR 2021/2178).
Your KPIs
What are your three Taxonomy KPIs?
Enter totals, aligned amounts and any activities you would treat as non-material.
The calculator works for a non-financial undertaking.
The 10% relief, from 1 January 2026, lets you skip assessing small activities, but you still report them separately as non-material (DR (EU) 2026/73).
EU Taxonomy · your three KPIs
Rules: Regulation (EU) 2020/852 Art 8(2); Delegated Regulation (EU) 2021/2178 Art 2(1a)–(1d), inserted by Delegated Regulation (EU) 2026/73 from 1 January 2026. For a non-financial undertaking; banks, insurers and asset managers use different KPIs.
Same currency for all three figures in each row. Nothing you enter leaves your browser.
What changed
What did the Omnibus change?
Who reports, not the Regulation: Directive (EU) 2026/470 amended four Directives and no Regulation.
- 202001
- 1 January 202202
Article 8 applies (climate objectives)
The other four objectives followed on 1 January 2023. - 4 July 202503
- 17 March 202604
- 1 July 202605
There is no voluntary reporting band for smaller CSRD companies: that proposal did not survive into the final Directive (Directive (EU) 2026/470).
Order of work
What should a UK group do first?
Find the EU entities in CSRD scope, then the activities, then the KPIs.
The same EU entities face the ESRS, compared with the ISSB standards on CSRD and ISSB.
A UK group without EU entities in scope has no Taxonomy duty, though investors may still ask about it.
- 1
List EU subsidiaries and their size
Turnover over €450 million and over 1,000 employees.
- 2
Decide who reports
Each subsidiary, the exemption route, or one subsidiary for all until 6 January 2030.
- 3
Map activities to the criteria
Climate and Environmental Delegated Acts.
- 4
Test DNSH and safeguards
All four conditions, activity by activity.
- 5
Calculate the three KPIs
Using the 10% relief where it applies.
The EU Taxonomy follows your EU subsidiaries, not your UK parent, so start with which of them the CSRD reaches.
- Through EU subsidiaries
The Taxonomy reaches a UK group only through its EU entities
Or through the conditions of their exemption. - Three KPIs
Turnover, CapEx and OpEx are what a non-financial undertaking reports
Financial undertakings use different ones. - Four conditions
Contribution, no significant harm, safeguards and the criteria
No criteria, no alignment. - 1 January 2026
A 10% materiality relief applies to assessment, not disclosure
Non-material amounts are still reported. - 15 July 2025
The UK will not have a taxonomy of its own
HM Treasury dropped it.
Will the UK have its own taxonomy?
No: HM Treasury dropped it on 15 July 2025.
The history of the UK proposal is on the UK green taxonomy.
The UK positionExplore
The UK position
What the UK prioritised
UK SRS, assurance of sustainability reporting and transition plans.
Frequently asked
What else do people ask about the EU Taxonomy?
Does the EU Taxonomy apply to UK companies?
Not directly.
It applies to EU undertakings in scope of the CSRD reporting duty.
A UK group meets it through an EU subsidiary that is itself in scope, or through the conditions of the exemption that subsidiary can use.
Article 40a’s text, for non-EU groups, does not on its face require the Taxonomy KPIs.
What does the EU Taxonomy require a company to report?
A non-financial undertaking reports three proportions under Article 8: of its turnover, its capital expenditure and its operating expenditure associated with environmentally sustainable activities.
Delegated Regulation 2021/2178 sets the method and the templates.
What makes an activity Taxonomy-aligned?
Four conditions in Article 3: it contributes substantially to one or more of six environmental objectives, does no significant harm to the others, is carried out with minimum safeguards, and meets the Commission’s technical screening criteria.
An activity with no criteria cannot qualify.
Did the Omnibus change the EU Taxonomy?
Not the Regulation.
Directive (EU) 2026/470 amended four Directives and no Regulation.
It narrowed CSRD scope, and because Article 8 follows CSRD scope by cross-reference, fewer companies now report.
Delegated Regulation 2026/73 separately simplified the templates and added a 10% materiality relief from 1 January 2026.
What is the 10% materiality threshold?
From 1 January 2026, a non-financial undertaking may skip assessing activities whose turnover, CapEx or OpEx is below 10% of the relevant KPI denominator. It must still report those amounts separately as non-material. It is relief from assessment, not from disclosure.
Is there a UK green taxonomy?
No. HM Treasury decided on 15 July 2025 that work on a UK taxonomy should not proceed.
Are the Taxonomy criteria being revised?
Proposed, not law.
The Commission published draft revisions on 17 March 2026, and no adoption had been published as at 15 October 2026 on the sources checked.
Separately, ESMA is due to give advice on the disclosures act by the end of October 2026.
Sources
Where does each figure come from?
Every figure, date and status on this page traces to the instrument’s owner.
Secondary commentary is never the source for a number.
Checked against 11 sources fromEUR-LexEuropean CommissionESMAHM Treasury
- EUR-LexRegulation (EU) 2020/852 (the Taxonomy Regulation), Arts 3, 8, 9, 17, 18 and 27
The four conditions, the six objectives, DNSH, minimum safeguards and the Article 8 KPIs.
- EUR-LexDelegated Regulation (EU) 2021/2178, consolidated 1 January 2026, Art 2
How a non-financial undertaking calculates and presents its KPIs.
- EUR-LexDelegated Regulation (EU) 2026/73
The 10% materiality relief and simpler templates, applying from 1 January 2026.
- EUR-LexDirective 2013/34/EU, consolidated text of March 2026, Arts 19a(9), 40a and 48i
Who reports, the third-country-parent exemption, the Art 40a report and the transitional EU sub-consolidation.
- EUR-LexDirective (EU) 2026/470 (Omnibus I)
Amends four Directives and no Regulation: the Taxonomy Regulation is untouched.
- EUR-LexDelegated Regulation (EU) 2021/2139 (Climate Delegated Act)
Technical screening criteria for climate mitigation and adaptation.
- EUR-LexDelegated Regulation (EU) 2023/2486 (Environmental Delegated Act)
Criteria for the four other objectives.
- European CommissionImplementing and delegated acts: Taxonomy Regulation
The list of acts; the 2026 drafts shown as not yet adopted.
- European CommissionCommission seeks feedback on revision of criteria (17 March 2026)
Feedback to 14 April; adoption planned “by the summer”.
- ESMAConsultation on technical advice on selected KPIs under the Disclosures Delegated Act (1 July 2026)
Final advice due by the end of October 2026; a preliminary preference to limit OpEx to R&D.
- HM TreasuryUK Green Taxonomy consultation response (15 July 2025)
Work on a UK taxonomy “should therefore not proceed”.