Real estate and taxonomy: how will taxonomy become the new environmental frame of reference?

The Taxonomy delegated act was published on December 10, 2021. The REITs, asset managers and property developers are affected. As with any regulatory text, it is necessary to decode it. It is true that the vocabulary used does not always facilitate understanding. The term taxonomy itself may seem reductive, as the regulation is not simply a classification. Moreover, the concrete application to the real estate sector deserves some explanations.

We have therefore sought to provide a first level of response to certain concrete questions:

• What is the mechanism provided by the taxonomy?
• What do "eligible activity" and "aligned activity" mean?
• Which companies are affected?
• Which activities in the real estate sector are affected?
• What are the thresholds for these real estate activities?
• What are the reporting obligations related to the taxonomy?
• What are the upcoming deadlines?
• How does the taxonomy relate to the CSRD and the SFDR regulations?

Enjoy your reading!