The report examines how companies in the forestry and construction sectors have responded to the EU taxonomy Regulation during its early implementation period. The analysis provides a view of the current market state in both sectors, highlighting key barriers and opportunities that companies face. Key findings indicate that there is still lack of interest from investors and customers on Taxonomy sustainability criteria, therefore the regulation has had limited impact on sustainability actions. Both sectors have chosen environmental objective one, climate change mitigation, as the objective to contribute significantly too. None have chosen environmental objective six, protection and restoration of biodiversity. The report provides recommendations to increase impact and understanding of the Taxonomy. Since it is still in its infancy, there is much to learn on the effects of the regulation.