Provision of IT/OT data-driven solutions
The activity manufactures, develops, installs, deploys, maintains, repairs or provides professional services, including technical consulting for design or monitoring of:
- software(148) and information technology (IT) or operational technology (OT) systems(149), including artificial intelligence (AI) based solutions, such as for automated machine learning, built for the purpose of remote monitoring and predictive maintenance, including systems for:
- remotely collecting, processing, transferring, and storing data from equipment, products or infrastructure during their use or operation;
- analysing the data and generating insights about the operational performance and condition of the equipment, product or infrastructure;
- providing remote maintenance and recommendations about measures required to avoid operational failure and maintain the equipment, product or infrastructure in an optimal operating condition and prolong their useful life and reduce resource use and waste;
- tracking and tracing software and IT or OT systems built for the purpose of providing identification, tracking and tracing of materials, products and assets through their respective value chains (including digital material and product passports) with the predominant objective to support the circularity of material flows and products or other objectives set out in Regulation (EU) 2020/852;
- lifecycle assessment software supporting the lifecycle assessment and related reporting for products, equipment or infrastructures;
- design and engineering software supporting the eco-design of products, equipment, and infrastructure, including waste management and resource efficiency;
- supplier management software supporting green procurement of materials, products and services with low environmental impact, but excluding the operation of market places supporting the trading of such goods;
- lifecycle performance management software supporting the monitoring and assessment of the circularity performance of products, equipment, or infrastructures during their lifecycle.
The economic activities in this category could be associated with several NACE codes, in particular C26, C27, J58.29, J61, J62 and J63.1 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
Substantial contribution
This activity can make a substantial contribution to the following objective(s). The activity must also pass DNSH assessment against the remaining five objectives.
✓ Circular economy
1. The economic activity manufactures, develops, installs, deploys, maintains, repairs or provides professional services, including technical consulting for design or monitoring, to one or more of the following IT/OT data-driven solutions that provide the capabilities listed below. Such IT/OT data-driven solutions include sensors (such as power, temperature, vibration, video, sound, viscosity), data collection and communication equipment, data repository (edge or cloud), and software. Where these capabilities are part of a broader software or IT/OT offering, only specific software add-ons implementing these capabilities qualify. 2. For remote monitoring and predictive maintenance systems, at least two of the following capabilities specified in points (a) to (d) are met in their full scope: alerting the user to abnormal sensor values, and assessing the status of the product, equipment, or infrastructure, detecting wear and tear or electrical issues, and drawing conclusions about the exact nature of abnormal operating conditions by means of advanced analytical methods;predicting the expected remaining lifetime of a product, equipment, or infrastructure, and recommending measures to extend the remaining lifetime;predicting an upcoming product, equipment or infrastructure failure and recommending measures to prevent such failure;providing recommendations about the highest value next use cycle, such as reuse, recovering components through parts harvesting for remanufacture, or recycling, taking into consideration a combination of factors regarding the product’s condition.IT/OT systems aimed at (i) monitoring for the replacement of consumables(150), such as printer ink, (ii) remote monitoring and remote maintenance of power generation plants that are more greenhouse gas intensive than 100 gCO2e/kWh, or (iii) monitoring and remote management of any type of fossil fuel engine do not qualify. 3. For tracking and tracing software and IT/OT systems, at least one of the following capabilities specified in points (a) to (d) is met in its full scope: providing identification, tracking and tracing of materials, products and assets through value chains in order to make accessible structured data (such as material content, substances, environmental information) required for lifecycle assessments or material declarations according to relevant standards, such as Commission Recommendation 2021/2279, ISO 14067:2018(151) or ISO 14040:2006(152), and sharing of such data with value chain partners, consumers, and other economic actors in compliance with relevant standards regarding data modelling, interoperability, data privacy and data security; provisioning and sharing of documents and data directly supporting the repair and maintenance of products and equipment, such as repair instruction, test equipment, wiring and connection diagrams, diagnostic fault and error codes, disassembly instructions;supporting reverse logistics, including the take-back of products for remanufacturing, refurbishment or recycling, by managing steps and transactions in the take-back process, such as pick-up order placement, tracking of sales transaction data, decomposition of product into materials to be re-injected into circular material flows, and by optimising decisions to prevent downcycling and maximise resource recovery. Digital product passports meeting the minimum requirements in Union law are not considered as taxonomy aligned;supporting optimisation and intensification of the use of products, through circular business models such as providing products as a service or peer-to-peer sharing.4. For lifecycle assessment software, at least one of the following capabilities specified in points (a) to (c) is met in its full scope: supporting the life cycle assessment of products, equipment or infrastructure with software-implemented methods and algorithms according to relevant standards such as Commission Recommendation (EU) 2021/2279, ISO 14067:2018(153) or ISO 14040:2006(154);providing data required for lifecycle analysis, such as standard carbon emission values and other environmental impacts for frequently used products and materials or production steps;providing recommendations for improving the design of a product, equipment, or infrastructure so as to minimize their material and carbon footprint. 5. For design and engineering software, at least one of the following capabilities specified in points (a) to (e) is met in its full scope: supporting users to formulate, document and manage product-specific circularity and other environmental design goals and requirements, such as design-for-remanufacturability, design-for-serviceability, minimal environmental impact from using or operating the product, minimal waste during production or construction and tailored production to eliminate over-specification and reduce material inputs;supporting users to explore product designs for the purpose of assessing and optimising product designs against specified circular or other environmental objectives, or finding the best trade-off between conflicting design goals, such as robustness vs. material use, greener material vs. costing or installing schedule or cost of downstream reuse and recycling systems;validating a design through analysis and simulation against specified circularity and other environmental design goals and requirements;supporting the computer-aided product design process – including mechanical, electrical, electronic or recipe design – with data and information about the impact of design and construction decisions on circularity and environmental performance;supporting the selection of materials and components with a low environmental impact through the provision of data about market-available materials and components and their cost.6. For supplier management software, at least one of the following capabilities specified in points (a) to (e) is met in its full scope: providing the user with information about suppliers and supplies of circular products, immediate products, components and materials that are designed for closed loop systems, reuse, remanufacturing or repurposing. The information provided exceeds the minimum information requirements in existing Union law(155); supporting the management and tracking suppliers’ compliance with standards and certifications related to the provision of such materials, products, and components;supporting the exchange with suppliers of data required to verify the environmental performance of supplied materials, products, and components; supporting the trading and matchmaking between suppliers and purchasers of circular, eco-designed or otherwise eco-friendly products, materials, and components;supporting reverse logistics. 7. For lifecycle performance management software, at least one of the following capabilities specified in points (a) to (e) is met in its full scope: supporting the monitoring and assessment of the circularity performance(156) of a product, equipment or infrastructure during its lifecycle over time;comparing circularity performance against original circularity design goals, analysing deviations and their root causes;supporting the planning and documentation of measures required to prolong the useful life of the product, equipment or infrastructure, such as maintenance, retrofit, or other services;supporting the impact assessment of such measures on circularity performance;providing the user with data required to take decisions on the future use of the product, equipment, or infrastructure, such as retrofit, change of use, decommissioning and recycling.8. All IT/OT data-driven solutions should meet the following criteria: techniques are adopted that support the reuse and use of secondary raw materials and reused components, and the solutions are designed for high durability, recyclability, easy disassembly, adaptability and upgradability;measures are in place to manage and recycle waste at the end-of life, including through decommissioning contractual agreements with recycling service providers, reflection in financial projections or official project documentation. These measures ensure that components and materials are segregated and treated to maximise recycling and reuse in accordance with the waste hierarchy, EU waste regulation principles and applicable regulations, in particular through the reuse and recycling of batteries and electronics and the critical raw materials therein. These measures also include the control and management of hazardous materials;preparation for re-use, recovery or recycling operations, or proper treatment, including the removal of all fluids and a selective treatment are performed in accordance with Annex VII to Directive 2012/19/EU.
Do No Significant Harm criteria
To be taxonomy-aligned, this activity must not significantly harm any of the five objectives it does not substantially contribute to.
Climate change mitigation
N/A
Climate change adaptation
The activity complies with the criteria set out in Appendix A of the applicable Delegated Act.
Water and marine resources
The activity complies with the criteria set out in Appendix B of the applicable Delegated Act.
Pollution prevention and control
The equipment used to operate the software meets the requirements laid down in Directive 2009/125/EC for servers and data storage products.The equipment used does not contain the restricted substances listed in Annex II to Directive 2011/65/EU, except where the concentration values by weight in homogeneous materials do not exceed the maximum values listed in that Annex.
Key thresholds
| Metric | Threshold | Unit |
|---|---|---|
| concentration of restricted substances (Annex II to Directive 2011/65/EU) | maximum values listed in Annex II | % by weight in homogeneous materials |
Biodiversity and ecosystems
N/A
Criteria sourced from the EU Taxonomy Navigator. Applicable act: Climate Delegated Act (OJ L 442, 9.12.2021). Last verified: 19 July 2026.
Related reading: EU Taxonomy explained · Evidence sustainability auditors look for
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