The EU Taxonomy (2020/852) regulation is a classification system for economic activities that contribute to environmental objectives.
Our solution provides a five-step process, enabling you to assess and improve your EU Taxonomy alignment credentials and prevent greenwashing.
The EU Taxonomy regulation is a classification system for economic activities to determine which are sustainable and prevent greenwashing. It provides clarification on the assessment process and disclosure of sustainable economic activities. The system includes social considerations through the minimum social safeguards requirements. To be classified as sustainable, economic activities must substantially contribute to one of the following environmental objectives, and DNSH to the other five:
- Climate change mitigation
- Climate change adaptation
- Water protection
- Circular economy
- Pollution prevention
- Biodiversity and ecosystems
Who will report on the EU Taxonomy?
- Investors who want to align with Sustainable Finance Disclosure Regulation (“SFDR”) Article 9 are required to report on the EU Taxonomy. Reporting is voluntary for all other financial market participants
- Companies in scope of the EU Non-Financial Reporting Directive (“NFRD”)
When does reporting become a requirement?
- From 2023, EU Taxonomy disclosures that contribute to water protection, the circular economy, pollution prevent, biodiversity and ecosystems are required
- Disclosures that contribute to climate change mitigation and adaption have been applicable since 2022
Achieve maximum EU Taxonomy alignment by completing a five-step process:
- Eligibility assessment
- Independent identification of which economic activities meet EU Taxonomy eligibility criteria
- Alignment data request
- Manage data collection to demonstrate the substantial contribution and do no significant harm (“DNSH”) clauses and compliance to the minimum social safeguards
- Alignment data review
- Assess company evidence against the EU Taxonomy for all eligible activities
- Identify gaps in company data and documentation to improve alignment
- Evaluate company operations against minimum social safeguards
- Alignment calculation and next steps
- Identify, calculate and report eligibility and alignment KPIs based on relevant metric revenue/CAPEX/OPEX
- Target setting to resolve gaps and increase alignment
- Understand what data to collect, how to collect and what to do with it for the EU Taxonomy
- Prove green credentials with independently verified Taxonomy reporting
- Stand out from competitors and access more capital with expert support to improve Taxonomy alignment