Chapter 03 · Reporting & strategyReporting, Disclosure & Frameworks
Taxonomy eligibility
Definition
Taxonomy eligibility means an economic activity falls within the scope of activities described by a taxonomy, before assessing whether it meets all alignment criteria.
References
This reference provides supporting context for how “Taxonomy eligibility” is defined and used.
Overview
What it means in practice
Taxonomy eligibility should be used with care because reporting terms often connect technical definitions to governance, assurance and public communication. The practical question is what decision the term helps a reader make.
In practice, users should state the boundary, method, evidence and intended audience. That keeps taxonomy eligibility from becoming a loose label that hides important assumptions.
Why it matters
Taxonomy eligibility sits in reporting and disclosure language, where the same phrase can affect scope, assurance, investor interpretation and regulatory presentation.
Common misconception
A common error is to treat Taxonomy eligibility as self-explanatory. The stronger approach is to state the framework, reporting boundary, audience and evidence that give the term meaning.
Review questions
What framework or method is being used? What evidence supports the term? What would a reader reasonably assume if the boundary is not stated?
How it is used
Standard setters, scheme owners, certification bodies, auditors and organisations seeking assurance use “Taxonomy eligibility” in standards, certification, conformity assessment, audits, controls and assurance engagements.
In each case, the user should state the named standard or scheme, version, scope, criteria, assurance level and competent decision-maker; otherwise, the same term may be applied to materially different situations. In this context, it refers to an economic activity falls within the scope of activities described by a taxonomy, before assessing whether it meets all alignment criteria.