It stands for Do No Significant Harm. It is a requirement under the EU Taxonomy that ensures economic activities do not negatively affect other environmental or social objectives. In CSRD and ESRS reporting, companies must assess whether actions taken to support one sustainability goal — such as climate mitigation — avoid causing harm to areas like biodiversity, water resources, or human rights.
The DNSH principle is central to the EU Taxonomy's six environmental objectives: climate change mitigation, climate change adaptation, sustainable use of water and marine resources, transition to a circular economy, pollution prevention, and protection of biodiversity and ecosystems. Companies must demonstrate compliance with DNSH criteria for each activity they wish to classify as taxonomy-aligned. This assessment often requires detailed technical screening and evidence-based documentation.
Learn more about EU Taxonomy reporting requirements and how they connect to your CSRD obligations. For a deeper understanding of the reporting standards, explore our guide on European Sustainability Reporting Standards (ESRS).
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