DNSH

The EU Taxonomy Regulation includes a crucial principle known as “Do No Significant Harm” (DNSH), which ensures that any economic activity labeled as environmentally sustainable must not cause significant harm to any of the six environmental objectives—even if it contributes positively to one of them.

🌍 DNSH: Core Concept

To be considered Taxonomy-aligned, an activity must:

1. Substantially contribute to one of the six environmental objectives.

2. Do no significant harm to the other five.

3. Comply with minimum social safeguards.

The six environmental objectives are:

• Climate change mitigation

• Climate change adaptation

• Sustainable use and protection of water and marine resources

• Transition to a circular economy

• Pollution prevention and control

• Protection and restoration of biodiversity and ecosystems.

✅ Climate Mitigation & DNSH Alignment

For an activity to align with climate mitigation:

• It must reduce or avoid greenhouse gas emissions.

• It must not, for example, harm biodiversity or increase pollution elsewhere in its lifecycle.

Example: A timber building may contribute to climate mitigation by storing carbon, but it must also:

• Avoid deforestation or biodiversity loss.

• Use sustainably sourced wood.

• Minimize pollution during construction and demolition.

📘 Practical Guidance

The European Commission’s Technical Guidance on DNSH outlines:

• How to assess DNSH across the full lifecycle of a project.

• When simplified approaches may apply (e.g., if an activity is 100% aligned with one objective).

• That compliance with EU law is necessary but not sufficient for DNSH.