First, the Taxonomy classifies which economic activities are considered environmentally sustainable, or “Taxonomy-aligned”. To be deemed Taxonomy-aligned, an activity must document a “substantial contribution” to at least 1 of 6 environmental objectives, while “doing no significant harm” (DNSH) to the remaining 5. Environmental objectives include

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,
6. the protection and restoration of biodiversity and ecosystems.

Detailed information on objectives and activities is defined within the Technical Screening Criteria (TSC). Second, the regulation requires that large companies and investors publicly disclose their proportion of Taxonomy-aligned activities. Through mandatory and consistent reporting across the EU, financial institutions and the market as a whole will be able to objectively compare the sustainability of companies and investment portfolios. Madaster’s primary function will be to generate documentation on real estate and infrastructure as an input for aggregated company or portfolio level reporting. In version 1.0 of the Taxonomy, Madaster’s largest task is to provide Circular Economy documentation by providing insights into which building and infrastructure materials are suitable for re-use and recycling at their end of use. Madaster also has a role to play in Pollution Prevention and Ecosystem Protection documentation by recording the use of toxic materials and timber carbon sequestration, respectively. In 2025, when the Taxonomy expands its scope beyond operational emissions, Madaster will play a much larger role in the documentation of embodied carbon and environmental impact pertaining to the Climate Change Mitigation objective. Additionally, as Circular Economy requirements expand, Madaster will offer documentation on the incorporation of reused, recycled, and sustainably harvested materials in new projects. The Supervisory Board of the Madaster foundation continues to monitor EU Taxonomy Developments and awaits the final Technical Screening Criteria (TSC) expected in June 2022. Madaster will evolve and develop its platform functionality to become an instrument for Taxonomy reporting. Through new forms of documentation, Madaster will enable asset owners and public bodies to measure and demonstrate sustainable, Taxonomy-aligned investments as the EU implements the European Green Deal.