NACE codes

NACE codes, short for "Nomenclature statistique des activités économiques dans la Communauté européenne", are the official statistical classification system for economic activities within the European Union. They provide a standardized framework for categorizing companies and industries, which is essential for statistical, regulatory, and administrative purposes. The NACE code allows for the uniform collection, analysis, and comparison of economic data across member states.

The structure of the NACE codes follows a four-level hierarchical system: The first level includes various economic sectors (e.g., production or services), which are subdivided into divisions, groups, and classes. This detailed classification is crucial for statistical reporting and compliance with regulatory requirements, such as those related to sustainable finance standards.

The current version, NACE Rev. 2.1, was updated in 2023 due to revisions and reflects changes in the European economy. NACE codes are also aligned with the international standard classification for economic activities (ISIC) of the United Nations, ensuring their international comparability. Companies use NACE codes not only for tax and regulatory purposes but also to identify relevant sectors for sustainability reporting and policy measures.