On 21 May 2025 the European Commission published an update of its sustainable finance roadmap on three fronts:
The EU Taxonomy of Sustainable Economic Activities
Of particular relevance to the ENGAGE for ESG initiative is the European Commission’s update on its work relating to the existing EU Taxonomy criteria.
Notably, the Commission stated that the EU taxonomy screening criteria, including the “do no significant harm” criteria, are being reviewed to update, simplify, and enhance their usability.
According to the information published, the feedback period could tentatively take place in early 2026, aiming to adopt a delegated act in the second quarter of 2026. The introduced changes would then apply as of the reporting year 2027 (for the financial year 2026), or possibly 2026 if companies voluntarily wish to report against the revised rules.
Later on, the Commission would also add new activities to the EU Taxonomy, taking into account Commission priorities and industry demands.
The Commission is also reviewing the EU Taxonomy disclosure rules with a simplification objective. However, the timeline for this revision has not yet been determined.
With respect to the potential for the addition of new Taxonomy activities, the ENGAGE for ESG consortium has developed specific reporting templates for residential mortgages and home renovation loans. These Templates have been recognised by the Spanish Intellectual Property Register with registration number 16 / 2025 / 2739. Banks and lenders can check the EU Taxonomy alignment of residential mortgages as well as home renovation loans in a dedicated private area in the ENGAGE Portal.
For more information, please contact engage4esg@eurodw.eu.
To achieve the proposed 55% emission reduction climate target by 2030, around EUR 275 billion of additional investments are needed per year.
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