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The EU Taxonomy might be considered an extra complexity for those already committing to the Corporate Sustainability Reporting Directive (CSRD). However, the right EU Taxonomy reporting software can easily be integrated into a workflow that delivers benefits beyond compliance with the latest EU regulations.
The EU Taxonomy is designed to guide investors and companies of all sizes toward more sustainable activities. This framework helps companies and stakeholders identify which economic activities (e.g., projects and investments) are environmentally sustainable. In this article, we’ll go through the five best EU Taxonomy reporting software tools, each with a slightly different angle.
The EU Taxonomy is a classification system designed to help businesses determine which economic activities are environmentally sustainable. To make sustainability a more tangible objective, there needs to be a consistent way of measuring what the EU considers sustainable–the EU Taxonomy contributes significantly by standardizing reporting across businesses.
The EU Taxonomy Regulation (Regulation (EU) 2020/852) legally enforces how a plethora of European (and some non-European) organizations present their alignment with the EU Taxonomy classification system. In short, both the classification and regulation are essential to keep everyone on the same page–and accountable.
The EU Taxonomy and CSRD represent two sides of the same coin: a robust sustainability reporting framework in the EU. The EU Taxonomy concerns itself with which economic activities are sustainable based on clear criteria, with the CSRD stressing how entities must report on them, including which KPIs to include and whether an activity is aligned or simply just eligible.
Are you looking to save time and create audit-ready reports that give you the best indication of your sustainability performance? If this is the case, EU Taxonomy reporting software is a no-brainer.
These digital tools have all the benefits you’d expect, including significant time savings, iron-clad statistics for confident compliance, and automatic updates to keep you in check with the latest regulations. However, there’s more to reporting software tools than the nuts and bolts of compliance.
Using EU Taxonomy reporting software gives you and your stakeholders confidence in your numbers, which invariably provide you with a more accurate picture of your sustainability practices, progress, and areas for improvement.
Research by the European Commission has shown that, on average, 20% of companies’ capital investments are aligned with the EU Taxonomy. That’s already a significant portion of expenditure that’s deemed sustainable and a lot for companies to highlight when talking about their corporate sustainability efforts.
Coolset offers compliance management for mid-market companies that need to quickly familiarize themselves with CSRD and EU Taxonomy regulations. For entities that aren’t blessed with endless resources, using a platform that collects data from as many sources as possible, automatically exports accurate reports, and keeps up with regulatory changes is a no-brainer.
Coolset guides companies through every step of EU Taxonomy compliance, from mapping eligible activities and assessing alignment with substantial contribution and DNSH criteria, to calculating and reporting Taxonomy KPIs. The platform simplifies complex processes with intuitive, survey-based workflows and automates the collection and organization of data, saving time and reducing errors.
Greenomy is a sustainability reporting platform designed for businesses that need to comply with both CSRD and EU Taxonomy regulations. Its advanced data centralization capabilities allow companies to integrate data from multiple sources and, crucially, automate reporting processes.
For organizations managing complex sustainability datasets, Greenomy helps by letting you upload vast amounts of data to your own ESG Data Library through a choice of over 100 API connectors. You’ll also be able to fully automate data flows in and out of the library for quicker checks and compliance.
Workiva is a financial and ESG reporting platform that aims to put transparency at the heart of its operations. Its bread and butter is financial reporting, which it streamlines through Data connectors for companies with on-premise or cloud applications. This helps companies connect siloed data together under one virtual roof, giving teams everywhere a complete overview of their organization’s broader sustainability performance.
Workiva also provides solutions and templates for those wishing to interact with ESG frameworks and thus disclose the correct information in a succinct and timely manner. As Workiva is geared toward banking, investment, and insurance entities, it pays special attention to the basics, like guiding companies to drum up internal support for ESG initiatives.
Code Gaia lets smaller entities tick off a lot of sustainability reporting boxes in a single platform. The platform helps SMEs meet CSRD and ESRD requirements while providing tools for double materiality analysis.
Code Gaia’s platform also includes an AI-supported EU Taxonomy module to help companies with fewer resources create compliant documentation in a less time-consuming way. Its CSRD module lets companies bulk upload contracts, reports, and policies to create new disclosures or glean new insights for strategic improvements.
Prioritizing carbon footprint measurements and analytics, Persefoni helps companies get ahead when it comes to carbon management on an organizational level. Its decarbonization strategies play a big part in the offering. However, there is also space for EU Taxonomy alignment through its sustainability reporting portfolio that is being slowly rolled out across 2025.
Choosing the right EU Taxonomy reporting software depends on your business’s size, industry, and reporting needs. Start by assessing the complexity of your operations and the level of integration you require; will you only have a few data sources to draw from, or will there be a substantial amount spanning various locations and time zones?
The best EU Taxonomy reporting software will come with features like automated data collection, eligibility and alignment assessments, and real-time regulatory updates so you don’t just stay compliant but do so in a way that saves time.
Also, consider scalability and ease of use. A good platform should grow with your business and offer intuitive tools that continue to simplify complex processes as they also grow in number. Lastly, make sure the software provides audit-ready reports and dependable customer support to address any challenges during implementation or compliance journeys.
Reporting may not be the topic you want to discuss every day, but investing time into finding the right tool now could save you even more time as the EU pushes on with more robust regulations.
With EU Taxonomy software tools like Coolset delivering trustworthy numbers, thoughtful business outlooks, and data-driven insights, you’ll be able to differentiate your company from others on the market as sustainability becomes a bigger point of attraction; in fact, 55% of consumers deem environmental responsibility very or even extremely important when choosing a brand, according to IBM’s research in 2024.
There are plenty of options for businesses looking to broach the subject of sustainability and compliance. Coolset specializes in helping mid-market companies effortlessly understand and comply with the latest regulations. Why not schedule a free demo to discover Coolset’s capabilities?
Note: This article is based on the original CSRD and ESRS. Following the release of the Omnibus proposal on February 26, some information may no longer be accurate. We are currently reviewing and updating this article to reflect the latest regulatory developments. In the meantime, we recommend reading our Omnibus deep-dive for up-to-date insights on reporting requirements.
Updated on March 24, 2025 - This article reflects the latest EU Omnibus regulatory changes and is accurate as of March 24, 2025. Its content has been reviewed to provide the most up-to-date guidance on ESG reporting in Europe.
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