EU Taxonomy diagnostics for banks

Banks are facing increasing pressure to comply with the evolving EU Taxonomy framework while maintaining efficient operations and meaningful ESG positioning. Despite recent simplifications introduced under the Omnibus amendments, the regulatory landscape remains complex, uncertain, and data-intensive. Institutions must navigate shifting rules, multiple compliance pathways, and ongoing interpretation challenges, while ensuring consistency with Delegated Acts and FAQs.

At the same time, the assessment process requires granular, hard-to-obtain counterparty data, making it difficult to achieve both accuracy and efficiency. Importantly, low Taxonomy KPIs do not necessarily reflect a lack of green financing, but rather a lack of capabilities, data availability, and evidence required to demonstrate that financed activities are Taxonomy-aligned.

At the same time, the amended regulation introduces new flexibility - including adjusted scope, materiality thresholds, and voluntary inclusion options - which creates real opportunities to improve KPIs when applied strategically. However, many banks are not yet fully leveraging these options.

As a result, institutions often miss optimization opportunities, face inconsistencies in reporting, and struggle to fully use the EU Taxonomy as a strategic tool for capital allocation and risk management, rather than just a reporting exercise.

The service focuses on translating recent EU Taxonomy amendments into clear, actionable implications for banks, with a strong emphasis on practical application within existing reporting setups.

It combines regulatory analysis with market practice insights to identify how new rules can be applied in a way that improves KPI outcomes while remaining fully compliant. Rather than reworking existing frameworks, the approach builds on current reporting structures and highlights where adjustments under the amended regulation create opportunities.

A structured diagnostics approach is used to:

• Map recent regulatory changes to the bank’s current reporting setup
• Identify relevant interpretation areas and available regulatory options
• Assess how these options are applied across the market
• Translate findings into clear, decision-ready guidance

The focus is on clarity and usability, ensuring that results can be directly applied by internal teams without additional interpretation or complex redesign.

• Regulatory Change Mapping - Translate latest EU Taxonomy amendments into concrete implications for the bank’s reporting approach
• KPI Impact Analysis - Identify how regulatory changes affect GAR and other Taxonomy KPIs
• Peer Benchmarking - Compare approaches and KPI outcomes with banks with similar portfolios
• Scope & Materiality Review - Assess application of scope adjustments and materiality thresholds
• Regulatory Options Analysis - Identify available choices (e.g. voluntary inclusion, timing of application) and their impact
• Data & Evidence Gap Review - Highlight where additional data or documentation can improve KPI outcomes
• Diagnostics Summary Report - Consolidated findings with clear implications
• Optimization Roadmap - Prioritized actions to improve KPIs and reporting efficiency
• Executive Workshop - Presentation of results and alignment on next steps

• KPI Uplift Potential Identified - Clear, actionable opportunities to improve GAR and other Taxonomy KPIs under the amended rules, translated into a prioritized, implementation-ready optimization roadmap 
• Alignment with Amended Regulation - Reporting approach updated and aligned with latest EU Taxonomy amendments and regulatory expectations
• Better Use of Regulatory Flexibility - Practical application of scope adjustments, materiality thresholds, and voluntary inclusion options
• Peer-Aligned Approach - Insights into how comparable banks structure reporting and achieve stronger KPI outcomes
• Improved Data & Evidence Coverage - Identification of gaps limiting KPI performance and how to address them
• More Consistent Reporting - Reduced inconsistencies across templates, interpretations, and disclosures
• Counterparty Engagement Approach - Structured strategy to improve data collection and evidence for alignment
• AI-Enabled Opportunities Identified - Targeted use cases to automate data extraction, validation, and reporting processes
• Decision-Ready Insights - Clear guidance enabling faster internal alignment and informed decision-making

Unlock Hidden KPI Potential
Improve reported sustainability performance by better evidencing already financed green activities and identifying realistic GAR uplift opportunities

Turn Regulation into Advantage
Use EU Taxonomy flexibility strategically to strengthen positioning rather than just comply

Reduce Reporting Effort
Focus resources on what matters through smarter scoping, materiality application, and more efficient processes

Increase Confidence in Disclosures
Ensure alignment with latest requirements while reducing risk of inconsistencies or misinterpretation and strengthening transparency towards stakeholders

Strengthen Market Positioning
Align with leading practices observed in peer institutions with similar portfolios, enhancing competitiveness with investors and regulators

Build Internal Capability
Enable teams to apply improvements independently using clear, practical guidance and a prioritized, actionable roadmap

Strengthen Data & Counterparty Strategy
Improve availability, quality, and usability of ESG and Taxonomy data through a more structured approach to counterparty engagement

Lay the Groundwork for Automation
Identify concrete AI and automation opportunities to improve data quality and enable long-term efficiency gains in reporting processes

• Provide relevant data, documentation, and portfolio overview 
• Ensure access to key stakeholders 
• Nominate a project contact person
• Participate in workshops and review sessions
• Review and validate interim findings
• Support decision-making and prioritization

This service provides a targeted EU Taxonomy diagnostics and optimization approach for banks, focused on identifying how recent regulatory amendments can be used to improve KPI performance and reporting efficiency.

What makes this service unique

Unlike traditional consulting approaches that focus on validating existing methodologies, this service is designed to unlock improvement potential within already established and audited frameworks. It focuses on what can be strategically adjusted under the amended regulation to improve outcomes - without requiring complex redesign or additional operational burden.

The approach combines:

• Deep understanding of EU Taxonomy application in banking
• Direct insight into regulatory interpretation and evolving expectations
• Benchmarking against peer institutions with similar portfolios
• Focus on real KPI improvement, not just compliance
• Practical, reusable outputs - not theoretical framework