While regulations can prove to be a powerful tool to encourage sustainable practices, there was no common agreement on extra financial reporting. Over the past years, the demand for transparency increased across all stakeholders. In response to these requests for more transparency and action for the environment, the European Commission developed a European Green Deal and a European taxonomy. The Green Deal has the objective to transform the EU’s economy to make it more sustainable, while the EU taxonomy aims at determining which economic activities are environmentally sustainable. This taxonomy should help increase sustainable investments while easing the implementation of the Green Deal.