One of the most common sources of confusion in Article\u202f8 reporting is the distinction between eligible, aligned, enabling, and transitional KPIs (i.e., Turnover, CapEx and OpEx).<\/p>\n
Here is a breakdown:<\/p>\n
\u2b55 Eligible activity – is \u201cin scope\u201d<\/strong><\/p>\n Turnover (or CapEx or OpEx) is eligible when it comes from an economic activity listed in the EU Taxonomy (i.e., it appears in the Climate Delegated Act or Environmental Delegated Act), regardless of whether the company meets the technical screening criteria.<\/p>\n \u27a1\ufe0f Eligibility = in scope, not green. It is the first filter in Article\u202f8: companies must disclose the share of turnover, CapEx, OpEx associated with Taxonomy\u2011eligible activities before assessing alignment.<\/p>\n \u2b55 Aligned activity – is \u201cfully compliant\u201d<\/strong><\/p>\n Turnover (or CapEx or OpEx) is aligned when the activity:<\/p>\n \ud83c\udf3f Substantially contributes to one EU environmental objective<\/p>\n \ud83c\udf3f Does no significant harm to the other environmental objectives<\/p>\n \ud83c\udf3f Complies with the technical screening criteria<\/p>\n \ud83c\udf3f Meets minimum safeguards (on an enterprise level)<\/p>\n \u27a1\ufe0f Alignment = fully Taxonomy\u2011compliant. This is the KPI investors look at to understand how \u201cgreen\u201d a company truly is.<\/p>\n \u2b55 Enabling activity – \u201cmakes others green\u201d<\/strong><\/p>\n Enabling activities generate turnover (or CapEx or OpEx) by helping other activities achieve substantial contribution (e.g., components for wind turbines, low\u2011carbon inputs). They are not green on their own, but they are essential to green outcomes.<\/p>\n \u27a1\ufe0f Enabling activities are a subset of aligned activities – not an alternative.<\/p>\n Financial products must disclose enabling activities separately.<\/p>\n \u2b55 Transitional activity – is \u201con the pathway\u201d<\/strong><\/p>\n Transitional activities apply where no low\u2011carbon alternative exists yet, but the activity is on a credible decarbonisation pathway. They must:<\/p>\n \u25aa\ufe0f Have lower emissions than the sector average \u27a1\ufe0f Transitional = necessary interim activities on the path to net zero. Also disclosed separately in financial product reporting.<\/p>\n \ud83d\udc49 How they fit together in Article\u202f8 KPI reporting:<\/strong><\/p>\n \u25aa\ufe0f Eligible = activity appears in the Taxonomy<\/p>\n \u25aa\ufe0f Aligned = meets all SC + DNSH + safeguards + TSC<\/p>\n \u25aa\ufe0f Enabling = subset of aligned<\/p>\n \u25aa\ufe0f Transitional = subset of aligned<\/p>\n Enabling and transitional activities do not replace alignment – they refine it.<\/p>\n —<\/p>\n \ud83c\udf3f A well\u2011structured, machine\u2011readable sustainability statement strengthens governance, accelerates internal learning, reveals strategic blind spots, and positions your organization for the EU\u2019s dual green and digital transition.<\/p>\n \ud83d\udc49 Contact us if you want to use our guided digital ESRS end-to-end templates to get a head start.<\/p>\n","protected":false},"excerpt":{"rendered":" One of the most common sources of confusion in Article\u202f8 reporting is the distinction between eligible, aligned, enabling, and transitional KPIs (i.e., Turnover, CapEx and OpEx). Here is a breakdown: \u2b55 Eligible activity – is \u201cin scope\u201d Turnover (or CapEx or OpEx) is eligible when it comes from an economic activity listed in the EU […]<\/p>\n","protected":false},"author":1,"featured_media":3235,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,5],"tags":[],"class_list":["post-3234","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-csrd","category-esrs","post-with-thumbnail","post-with-thumbnail-large"],"_links":{"self":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts\/3234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/comments?post=3234"}],"version-history":[{"count":3,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts\/3234\/revisions"}],"predecessor-version":[{"id":3238,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts\/3234\/revisions\/3238"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/media\/3235"}],"wp:attachment":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/media?parent=3234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/categories?post=3234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/tags?post=3234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\u25aa\ufe0f Avoid lock\u2011in
\n\u25aa\ufe0f Not hinder low\u2011carbon alternatives
\n\u25aa\ufe0f Tighten criteria over time<\/p>\n