FAQ.- Is the EU taxonomy part of CSRD?

Yes. All companies reporting to CSRD will have to report on their alignment with EU Taxonomy. CSRD also takes other frameworks including TCFD, GRI and SASB into consideration. Furthermore, the indicators of the standards from SFDR will be aligned with the reporting of the CSRD.

The SFDR already governs how financial market participants should disclose sustainability information about the companies they invest in. To successfully do this, those financial market participants need to have enough robust information from those companies. The information is released as part of the CSRD, which aims to ensure that investee companies report the information financial market participants need to fulfil their own SFDR reporting requirements.