Our comprehensive EU Taxonomy advisory is a multi-step process that helps companies determine to what extent and how they comply with the taxonomy requirements.
1. Eligibility screening
- Mapping: identifying which of the company’s activities fall under the scope of the EU Taxonomy (list of economic activities according to the regulation and delegated acts).
- Documentation: activity-by-activity classification as “eligible” / “non-eligible”.
- Output: eligible mapping table.
2. Alignment assessment
Only for activities that have already passed the eligibility screening:
- Substantial contribution → assessment of whether the activity makes a substantial contribution to one of the environmental objectives (e.g. energy efficiency in buildings, renewable energy), and whether it meets the related technical screening criteria (TSCs).
- DNSH (Do No Significant Harm) → ensuring that no other environmental objectives are significantly harmed (e.g. construction must not damage biodiversity).
- Minimum safeguards → assessment of compliance with human rights, labour, and ethical principles.
- Output: alignment table + list of supporting evidence.
3. Data collection and evidence organization
- Technical documentation (e.g. for buildings: EPC, primary energy consumption, LCA, certificates, etc.).
- HR and corporate governance documents (e.g. code of ethics, grievance mechanism, risk analysis).
- Supply chain audits / declarations.
4. Taxonomy ratio calculation
- For companies:
- turnover share aligned with the taxonomy,
- CAPEX/OPEX share aligned with the taxonomy.
- For banks: GAR (Green Asset Ratio), for investors: BTAR (Bond & Taxonomy Alignment Ratio).
- Output: calculated ratios, optionally benchmarked against industry peers.
5. External validation / audit support
- Preparation for the audit or external reviewer
- Gap analysis: identifying areas to be addressed
6. Reporting and communication
- Mandatory reporting (as part of CSRD / financial statements).
- Voluntary reporting if the company wishes to strengthen its sustainability commitment.
- Investor presentations, ESG report supplements.
7. Strategic advisory / development roadmap
- Addressing identified gaps: e.g. building energy efficiency upgrades, HR risk management, supplier monitoring.
- Aligning CAPEX plans with the Taxonomy: ensuring that future investments are taxonomy-compliant from the outset.
- Ongoing monitoring and extension to new sectors (as the regulation expands year by year).
Energy certification of buildings according to Decree 9/2023 ÉKM, resulting in a verified energy performance certificate. This document and the corresponding classification (near-zero energy demand) are mandatory requirements for obtaining a occupancy permit for new buildings. For existing buildings, the EPC (Energy Performance Certificate) is essential for rental and sales contracts. The certificate provides the building’s primary energy consumption and CO₂ emissions calculated using a standardized methodology, and also includes optimization recommendations.
The energy certificate becomes verified when a registered energy auditor at the Hungarian Chamber of Engineers uploads it to the Lechner Knowledge Center database. Uploaded certificates, valid for five years, can be queried at any time by address.
The verified energy savings can also be documented for grant applications and EKR projects.
Building certifications have their own specific features that are important to consider, however the workflow is very similar for each, so it is presented below in general terms.
1. Project initiation and goal setting
- Which certification system the project targets (BREEAM, LEED, WELL, DGNB, A4U)
- Which rating level (e.g., BREEAM Excellent, LEED Platinum)
- Whether EU Taxonomy compliance is also a goal
2. Preliminary assessment / Gap Analysis
- We review the building plans or existing condition and compare them with the chosen system’s requirements.
- Identify:
- criteria automatically met,
- criteria that are missing,
- what costs and efforts are needed to address gaps.
- Output: preliminary scoring matrix, realistic project prospects.
3. Detailed documentation and compliance plan
- For each criterion, specify required documents / measurements / declarations.
- Examples:
- Energy: EPC, thermography and/or airtightness testing, life cycle assessment (LCA).
- Water: water-saving devices, water consumption monitoring.
- Materials: environmentally friendly construction materials, EPDs, recycled content.
- Transport: bicycle storage, public transport connections.
- Wellbeing: natural light, acoustics, air quality, water quality.
- Output: documentation schedule.
4. Project tracking and advisory
- Coordination with designers and contractors → to ensure implementation meets the scoring system.
- Organization of measurements and tests: involvement of ecologists, flood protection experts, acoustic assessment.
- Supplier declarations: regarding materials and certifications.
5. Preliminary submission (Design Stage) //optional//
- The first possible submission (usually at the end of the design phase), where the certification assessor preliminarily scores the documentation.
- The expected certification level is issued (e.g., BREEAM Excellent pre-assessed).
6. Support during implementation phase
- On-site inspections and checks during construction.
- Collection of documents, photos, measurements.
- Coordination between the contractor and the certification body.
7. Final submission and audit (Post Construction)
- Submission of complete documentation to the certification body.
- Independent auditor evaluates and may request supplementary information.
- After successful verification, the certification certificate is issued, valid indefinitely for new constructions, and for existing buildings it must be renewed every 3 years.
8. Connection with the EU Taxonomy
- Building certification systems overlap in many requirements with Taxonomy TSC and DNSH criteria (e.g., energy efficiency, water protection, materials, LCA).
- Thus, a well-executed BREEAM/LEED/DGNB project significantly supports EU Taxonomy compliance.
- Handling both together → greater value for investors and banks.
9. Operational phase and monitoring
- Some systems (e.g., BREEAM In-Use, WELL Performance Verification) require continuous data collection and monitoring.
- From the EU Taxonomy perspective, this is also valuable as it helps demonstrate ongoing compliance.
The measurement of buildings is carried out in accordance with the EN ISO 6781-1:2023 standard by a certified Level II thermographer. The non-destructive thermal performance assessment of buildings is conducted using a thermal imaging camera in order to identify and localize thermal bridges, heat losses, insulation deficiencies, and air leaks. In addition to EU Taxonomy requirements, such measurements are also relevant for building certifications such as LEED, BREEAM, and DGNB.
For the measurement of industrial and electrical power systems (e.g., checking for overheating in switchboards, monitoring the condition of cables, turbomachinery, bearings), other standards apply:
- IEC 62446-3 (thermography of photovoltaic systems),
- ISO 18434-1 (thermographic condition monitoring of mechanical equipment),
- or various IEC electrical safety standards.
In many cases, such measurements are required for insurance purposes. Our experience shows that these inspections (and interventions in case of detected faults) can prevent significant financial damage and even loss of life.
Important: The usual air leakage paths — doors and vents — must be temporarily sealed and the building services (ventilation and fire-safety systems) switched off before the test. Careful preparation is required.
For the test, a variable-speed fan is mounted in a door or window frame (hence the English term “blower door”). Using the fan, we then create approximately +50 Pa overpressure and −50 Pa underpressure (which roughly corresponds to a Beaufort wind force of 4–5) and measure the air leakage under these controlled conditions. This procedure also helps identify locations causing leakage (for example defects originating in the design or workmanship).
Largely invisible to the naked eye, these problems can be reliably detected by non-destructive testing methods such as air-tightness testing and thermographic (infrared) surveys, providing reassuring answers about whether the building suffers from excessive air leakage, which can:
- work against energy efficiency and increase operational costs;
- cause moisture damage (when convective airflows form);
- degrade acoustic performance;
- lead to deterioration of the indoor air environment;
- create thermal comfort problems (drafts);
- and may prevent fire-protection systems that rely on inerting gases from functioning correctly.
The air-tightness measurement is performed in accordance with EN ISO 9972:2015. The test is a standard part of the requirements for various certification schemes (such as LEED, BREEAM, DGNB, WELL) and is relevant to the EU Taxonomy.
The climate risk and vulnerability assessment is a cross-sectoral requirement under the EU Taxonomy and must be applied to all relevant economic activities.
After defining the time horizon and scope of assessment, we identify the climate-related hazards relevant to the activity, such as:
- Heatwaves / heat stress
- Extreme rainfall, flooding
- Severe windstorms
- Sea level rise / coastal flooding
- Drought / water scarcity
- Lack of snow/ice / frost damage, etc.
Next comes the assessment of sensitivity and exposure.
By determining both the severity of potential impacts and the likelihood of occurrence, we establish an overall risk level. Based on this, we propose adaptation measures. The aim is to reduce each hazard’s associated risk to an acceptable level.
The life cycle assessment of buildings is carried out according to the guidance of the Level(s) framework and the EN 15978 standard.
The purpose of the calculation is to determine the total embodied and (expected) operational environmental footprint and carbon emissions over the entire building life cycle—ideally already in the design phase. The results support informed decision-making, for example in making use of passive architectural solutions, choosing appropriate construction technologies and materials, and optimizing operation.
The EU Taxonomy does not yet define threshold values; it only requires that the calculation be performed. However, the progressively stricter European building energy regulation, i.e. the Energy Performance of Buildings Directive (EPBD), will make such calculations mandatory from 2027 and will gradually introduce binding performance thresholds.
The CRREM (Carbon Risk Real Estate Monitor) is an international framework that helps real estate stakeholders – such as investors, developers, or operators – assess and reduce the carbon emissions of their properties, while also aligning with long-term decarbonization goals.
What is CRREM used for?
- It shows how a specific building or portfolio performs in terms of carbon emissions.
- Makes properties comparable against the sector’s designated “decarbonization pathway.”
- Helps identify carbon risks (e.g., when a building becomes “stranded” compared to environmental expectations).
- Supports sustainable investment decisions and regulatory compliance (e.g., EU Taxonomy, SFDR).
Why is it important?
Due to tightening regulations and market expectations, carbon emissions have become a key factor for real estate. CRREM helps anticipate which buildings may lose value in the future and how this can be prevented through retrofits and energy efficiency investments.