Six Environmental Objectives
The EU Taxonomy defines six environmental objectives used to assess whether an economic activity is environmentally sustainable; an activity must contribute substantially to at least one objective without significantly harming any of the others.
The six environmental objectives form the substantive foundation of the EU Taxonomy, the European Union's unified classification system for environmentally sustainable economic activities. They are (1) climate change mitigation, (2) climate change adaptation, (3) the sustainable use and protection of water and marine resources, (4) the transition to a circular economy, (5) pollution prevention and control, and (6) the protection and restoration of biodiversity and ecosystems. These objectives are conclusively set out in Article 9 of the Taxonomy Regulation (EU) 2020/852 and define how environmental sustainability is to be measured at the European level.
Under Article 3 of the Taxonomy Regulation, an economic activity qualifies as environmentally sustainable only if it cumulatively meets four conditions: it must make a substantial contribution to at least one of the six environmental objectives, must not significantly harm any of the other objectives (the "Do No Significant Harm", DNSH, principle), must comply with minimum safeguards, and must meet the technical screening criteria laid down in delegated acts. The Climate Delegated Regulation (EU) 2021/2139 applies to the two climate objectives, while the Environmental Delegated Regulation (EU) 2023/2486 applies to the four environmental objectives.
For undertakings subject to reporting obligations, the six environmental objectives are of direct practical relevance: under Article 8 of the Taxonomy Regulation, companies within the scope of the CSRD must disclose the share of their turnover, capital expenditure (CapEx) and operating expenditure (OpEx) associated with Taxonomy-eligible and Taxonomy-aligned activities. These figures are reported per environmental objective and create comparability for investors, banks and supervisory authorities. The environmental objectives thus link the EU's sustainable finance architecture, non-financial reporting under the ESRS, and the channelling of capital into sustainable activities.
Legal Basis
Article 9 of Regulation (EU) 2020/852 (Taxonomy Regulation); Articles 3 and 8 of Regulation (EU) 2020/852; Delegated Regulation (EU) 2021/2139; Delegated Regulation (EU) 2023/2486
Practical Example
For CSRD reporting, a sustainability manager at a mid-sized machinery manufacturer maps the company's business activities to the six environmental objectives. She assesses the production of energy-efficient equipment for a substantial contribution to climate change mitigation (objective 1) and checks it against the technical screening criteria of the Climate Delegated Regulation. She then verifies through the DNSH criteria that the activity does not significantly harm water resources or biodiversity, documents compliance with the minimum safeguards, and calculates the Taxonomy-aligned shares of turnover, CapEx and OpEx per objective for the management report.