Taxonomy reporting guidelines for real estate and construction operators

Free taxonomy reporting support is available for experts working in the real estate and construction sectors. The EU Taxonomy Reporting Guide and the related Criteria Tool with its guides have been produced in a two-year taxonomy implementation project implemented by the Finnish Construction Industry Training Centre RATEKO.

The EU Taxonomy Reporting Guide brings together the principles guiding taxonomy reporting in the Finnish real estate and construction sector. The guide presents, among other things, recommendations regarding the application of the EU Taxonomy.

“The goal is to support companies in the industry in starting and developing taxonomy reporting in the most practical way possible. The guide focuses on the specific features of taxonomy legislation in the real estate and construction sectors,” said the chairman of the project’s steering group. Jani Kemppainen The construction industry from RT says.

The guide is based on current legislation, clarifications on taxonomy legislation published by the EU Commission, and discussions held at workshops organized by RATEKO in 2024.

According to Jani Kemppainen, the technical assessment criteria defined in taxonomy legislation play a significant role when assessing the compliance of economic activities with the taxonomy. The technical assessment criteria and their application proposals have been compiled in the Criteria tool.

The project also links to the guidelines produced in the project for assessing climate risks for buildings and for applying the circular economy DNSH (do no significant harm) criteria for construction.

Taxonomy guides financing for sustainable business

The EU taxonomy, or classification system for sustainable finance, is part of the EU's financial reform and sustainable finance action plan, which links corporate finance with the implementation of climate and environmental goals. The aim is to direct capital towards sustainable business and the green economy.

In spring 2025, large listed companies will publish their taxonomy data for the first time as part of the CSRD and Accounting Act-compliant sustainability report, which in turn will be part of the 2024 annual report and financial statements. In the coming years, the sustainability reporting obligation will gradually expand to cover other real estate and construction companies.

“Taxonomy can affect an individual real estate and construction company through legal reporting requirements, contractual terms, or information requests from other parties in the value chain. Although taxonomy reporting initially only concerns large companies, taxonomy-related information requests can extend to companies of all sizes in supply chains,” Jani Kemppainen emphasizes.

The first review of the taxonomy and its technical assessment criteria, commissioned by the EU Commission, is also underway in the spring of 2025. The underlying objective, included in the taxonomy, is to tighten the technical assessment criteria gradually and in such a way that the latest scientific research results and technological improvements, as well as the renewal of EU legislation, are taken into account.

Companies applying the taxonomy can submit reasoned development proposals to the EU Commission on the usability of the taxonomy through a separate feedback channel (Stakeholder Request Mechanism). The real estate and construction sector has already submitted improvement proposals for those criteria that have been unclear or unreasonably difficult to apply since 2023. The feedback has been coordinated by the Finnish Construction Industry Federation (RT) and the European Construction Contractors Federation (FIEC).

RATEKO and RT were responsible for the taxonomy implementation project

The taxonomy implementation project has received funding from the Ministry of the Environment's Low Carbon Built Environment Programme, which is funded by the EU's one-off Recovery and Resilience Facility (RRF). The project's self-financing share has been provided by the Finnish Construction Industry Training Centre RATEKO and the Finnish Building Construction Industry Association.

RATEKO has implemented the project in cooperation with the Finnish Construction Industry Association (RT) and its divisions: Building Construction Industry, Building Products Industry, Building Technical Industry and Infra.

The reporting guide was published in a webinar organized on February 5.2.2025, XNUMX, which reviewed current perspectives on sustainability and taxonomy reporting, as well as the development of taxonomy legislation.