SME disclosure on taxonomy alignment : cost/benefit analysis : final report : executive summary

The subject of the Study is the EU Taxonomy, a regulatory and navigational tool that provides a unified and broad classification system for sustainable economic activities. It was primarily conceived to steer capital allocation by leveraging investors' growing demand for demonstrable sustainable investments, and reduce the risk of greenwashing in current market practices. The Taxonomy Regulation sets reporting obligations for large and listed companies within the scope of, first, the Non-Financial Reporting Directive (NFRD), and, starting from 2023, the Corporate Sustainability Reporting Directive (CSRD). Thus, listed and non-listed micro enterprises, as well as non-listed small and medium-sized enterprises (SMEs)1 , are excluded from the Taxonomy reporting obligations.