We cannot solve our problems with the same thinking we used when we created them.
Albert Einstein, Physicist
In the dynamic landscape of business, maintaining a competitive edge is crucial when it comes to achieving success. One significant development that you might be aware of is the EU Taxonomy. But let's delve into the details – what precisely is the EU Taxonomy, and why should it be significant for your business? Even if you think it's not yet applicable to you, we are here to shed light on why it could matter to you.
How does this concern your transport service business? Transport services were identified as being crucial economic activities with the potential to make a major contribution when it comes to meeting climate objectives. Well, the EU Taxonomy is relevant to your operations, especially if you're keen on promoting sustainability. Picture it as a roadmap for sustainable practices, leading your business towards an eco-friendlier future. Moreover, as reporting obligations could kick in, understanding the EU Taxonomy's intricacies becomes even more vital.
At its core, the EU Taxonomy regulation is like a green compass guiding the way to sustainable economic activities within the European Union. Think of it as a universal language that sets criteria for identifying environmentally friendly practices across diverse sectors.
Its creation was a strategic response to classify and provide a framework for comparison with other companies, but with one of the side effect also being to prevent greenwashing – those deceptive claims that mask unsustainable actions.
The regulation not only brings clarity but also transparency to the concept of environmentally sustainable economic activities. As the EU strives to foster sustainable finance and transition towards a greener economy, the EU Taxonomy stands as a pillar of this transformation.
The reporting requirements tied to the EU Taxonomy aren't a distant future concern anymore. If your company has over 500 employees and is publicly listed, you're already in the reporting boat. But brace yourself: as of the financial year 2025, these obligations spread wider – encompassing businesses meeting two out of three criteria:
1. More than 250 employees
2. More than 40M € turnover
3. More than 20M € total assets
Small and medium-sized enterprises listed on the stock market will also be onboarded by 2026.
Something to take into consideration: Pause for a moment – even if your direct operations don't fall under these criteria, your clients might. And in this interconnected landscape, their alignment with EU Taxonomy criteria could have a ripple effect on your business. The EU Taxonomy isn't just about regulations: it's a guiding light for customers and investors alike, shaping their decisions towards sustainability.
The fulfillment criteria doesn't stop at vehicles – tires also have their role. It starts with the choice of the vehicle, and zero or low emission vehicles must be equipped with tires that meet the correct label criteria in order to determine their EU Taxonomy alignment:
1. Vehicles: Opting for Zero Tailpipe Emission Vehicles (like electric ones) is the route to follow. Remember, there's room for certain low-emission vehicles too.
The following vehicles may also qualify:
Some low emission N2/N3 vehicles in accordance with Regulation (EU) 2019/1242, article 3 (12)
M2/M3 vehicles with internal combustion engine (ICE) and emission standard Euro 6 / VI* until end of 2025
M1/N1 vehicles with lower than 50g CO2 per km until end of 2025.
2. Tires: The EU tire label criteria serve as the guiding light. Opt for tires that meet these criteria for a smoother journey towards alignment. To be aligned with the EU Taxonomy the two highest populated classes in fuel efficiency and the highest populated class in external rolling noise must be met.
Please note: The highest populated class is not automatically a label value “A” if no other tire fulfills that value. What counts is the highest class in that more than one tire is registered (= “populated“).
The path to EU Taxonomy-ready tires
Achieving EU Taxonomy alignment for your tires involves a bit of detective work. Rely on the EPREL database, which evaluates tire categories, sizes, performance in snowy conditions (3PMSF), load capacity, speed category, and ice performance (C1). This portal, launched by the EU Commission, is your compass to determine whether or not your tires are ranked in the highest populated classes and thus align with the EU Taxonomy criteria.
While the EU Taxonomy's primary aim is to aid investors in discerning sustainable investments, the benefits extend to businesses as well. Your transport service can find value in assessing its sustainability practices against this framework. Not only does this reinforce your responsibility to the environment, but it also positions you as an attractive option for conscious customers and investors.
The Benefits Await: What's in it for You
Sustainability pioneer: Shine a light on your operations, showing the world your commitment to sustainability.
Customer Satisfaction: Meet evolving customer demands by leveraging EU Taxonomy as a sales argument.
Retention Boost: Strengthen customer loyalty through enhanced environmental credibility.
Emission Reduction: Shrink your carbon footprint, contributing to a cleaner planet.
Comparability: Standardization of reporting simplifies the assessment of business activities and prevents greenwashing
Green Capital: Embrace incentives that stem from aligning with sustainable practices.
Amidst the dynamic shifts in economic landscapes and the resounding call for sustainability, embracing a comprehensive solution becomes essential. This is where our commitment steps in.
At Continental, we're your partners on this voyage towards sustainability. Our tire solutions continuously adapt to the ever-evolving regulatory landscape. With our dedicated focus on innovating new products and refining our existing portfolio, we do our best to ensure that you have access to tires that meet the taxonomy criteria for transport services and environmentally friendly tires. Anticipate improved rolling resistance and quieter rides, contributing to a greener journey ahead.
The UltraContact NXT is our most sustainable tire, striking the optimum balance between sustainability, safety and efficiency. Featuring a composition of recycled, renewable and certified materials, the UltraContact NXT offers a safe, efficient and comfortable driving performance.
Moreover, the EU tire label awards all sizes of the UltraContact NXT a triple A rating, so this tire could be already a perfect choice for your passenger tire fleet.
Learn more about the UCNXT tire here and make your fleet EU taxonomy ready.
Enter our cutting-edge tire management consulting concept (LODC). It's a holistic approach crafted to navigate economic fluctuations, embrace the electric mobility wave, and tackle financial uncertainties head-on. With LODC, you're not merely confronting these challenges; you're capitalizing on them. Extract optimum value from your tires and steer your fleet's operational costs with precision.
As your partner, we're giving our best in delivering EU Taxonomy-aligned tires that perfectly match the demands of your electric fleet. But our partnership doesn't stop at tires. We offer tailored services and cutting-edge digital solutions that empower your business to operate efficiently and sustainably. It's not just about staying compliant; it's about excelling in a rapidly evolving landscape.
In an age of transition, embracing the EU Taxonomy isn't just a response – it's a strategic move. It aligns your transport business with sustainability goals and opens doors to economic and environmental advantages. As LODC shapes your tire management and Continental empowers your fleet, you're not just driving along; you're steering your business towards a more sustainable and prosperous tomorrow.
Disclaimer: This website is intended for informational purposes only and does not replace independent professional advice. Please note that any information given does not overrule the EU Taxonomy Regulation and delegated acts and is subject to changes. Continental does not guarantee the accuracy, completeness and timeliness, as errors can occur. To the extent permitted by law, any liability is excluded. Sources: Taxonomy Regulation (EU) 2020/852; Corporate Sustainability Reporting Directive (EU) 2020/2464; Nonfinancial Reporting Directive (EU) 2014/95, Delegated Regulation (EU) 2021/2139 (Climate Delegated Act); Vehicle Type Approval Regulation (EU) 2018/858; Regulation (EU) 2019/1242.