Understanding how to align Capital Expenditure (CapEx) with the EU Taxonomy is crucial for businesses navigating ESG criteria. The Taxonomy sets standards for sustainable economic activity, and reporting the % of CapEx aligned demonstrates commitment to sustainability. To report CapEx alignment accurately, companies must identify relevant activities, analyze the Taxonomy's technical screening criteria, calculate the proportion of CapEx aligned, and document findings in a transparent report. Aligning CapEx with the Taxonomy attracts conscious investors, improves reputation, guides sustainable investment decisions, and contributes to market transparency. In conclusion, a thorough understanding of the Taxonomy and its criteria is essential for effective reporting and reaping the benefits of sustainability.