Do No Significant Harm (DNSH)

The Do No Significant Harm (DNSH) principle establishes that an economic activity must not significantly harm any of the six environmental objectives of the EU Taxonomy. It is one of the pillars that determine when an activity can be considered environmentally sustainable.

The six environmental objectives

The DNSH principle is assessed against the six environmental objectives defined by the Taxonomy:

1. Climate change mitigation.
2. Climate change adaptation.
3. Sustainable use and protection of water and marine resources.
4. Transition to a circular economy.
5. Pollution prevention and control.
6. Protection and restoration of biodiversity and ecosystems.

Legal basis and criteria

The principle is set out in the Taxonomy Regulation, Regulation (EU) 2020/852. Its Article 17 defines what constitutes significant harm to each objective. For an activity to be Taxonomy-aligned, it must meet three conditions cumulatively:

• Make a substantial contribution to at least one of the six environmental objectives.
• Do no significant harm (DNSH) to any of the other five.
• Meet minimum (social) safeguards.

Compliance with DNSH is assessed through technical screening criteria set out in delegated acts, which specify, sector by sector, what counts as significant harm. In this sense, DNSH relates to instruments such as the environmental impact assessment and connects with detailed standards such as ESRS E2 on pollution or ESRS E4 on biodiversity and ecosystems.

Where DNSH applies

Although it originated with the Taxonomy, the DNSH principle is also used in other EU frameworks. It appears in the SFDR, the sustainable finance disclosure regulation, and in the Recovery and Resilience Facility (RRF), the instrument that channels European recovery funds. It is worth bearing in mind that the precise definition of DNSH can vary between rules, so its application depends on the framework in which it is used.

Relationship with reporting and the Taxonomy

DNSH is central to calculating indicators such as the green asset ratio, since only aligned activities, which also pass the DNSH test, count as sustainable. The 2026 Omnibus simplification reduces part of the Taxonomy reporting burden, for example through materiality thresholds, while keeping the DNSH principle as a condition of alignment.

What it means for your company

• Identify which activities you assess against the Taxonomy and verify that they do not harm the other environmental objectives.
• Rely on the technical screening criteria in the delegated acts to document DNSH compliance.
• Review how the simplification affects your specific reporting obligations.

How Manglai helps you

Applying the DNSH principle requires solid environmental data on your activities. Manglai helps you measure and structure your environmental information so you can substantiate compliance with the Taxonomy criteria rigorously. Discover how Manglai can help you organise your sustainability information.