Abstract:

This article examines the application of the European Union (EU) Taxonomy for Sustainable Activities by the largest energy companies listed on the Bucharest Stock Exchange in Romania. The EU Taxonomy (Regulation 2020/852) provides a framework for classifying environmentally sustainable economic activities. The study focuses on five major energy firms: OMV Petrom, Hidroelectrica, Nuclearelectrica, Transgaz, and Electrica. The analysis assesses the comprehensiveness of their Taxonomy reports, which are expected to be clear, transparent, and detailed. The findings reveal that only OMV Petrom reported a small percentage of Taxonomy-aligned turnover (0.02%), while the other companies struggled to meet the criteria for significant contributions, Do No Significant Harm (DNSH), and minimum social guarantees. The study highlights the challenges faced by these firms in fully aligning with the EU Taxonomy, including the lack of clarity in operationalizing the measures and the need for more standardized and reliable environmental information. The results underscore the importance of sustainability reporting in shaping investment decisions and corporate governance, as well as the need for improved reporting infrastructure to meet the EU’s environmental objectives.