The EU Taxonomy Regulation requires all firms covered by the EU Non-Financial Reporting Directive (NFRD), which is giving way to the more stringent Corporate Sustainability Reporting Directive (CSRD), to report Key Performance Indicators (KPIs) related to environmentally sustainable activities that are EU Taxonomy aligned (read here for more on Taxonomy eligibility and alignment). The Taxonomy...
One of the key objectives of the EU Sustainable Finance Action Plan is to improve transparency on the sustainability performance of corporates and to reduce avenues for “greenwashing“. Therefore, the EU Taxonomy describes the “environmentally sustainable” economic activities and the financial metrics to quantify the performance of these taxonomy-aligned economic activities. The Taxonomy Regulation requires...
The EU created the Sustainable Finance Action Plan to direct financial flows toward sustainable investments, and the EU Taxonomy is the bedrock of the Sustainable Finance Framework. The EU Taxonomy is a classification system for determining which economic activities are environmentally sustainable or Taxonomy eligible. The objective of the Taxonomy is to prevent “greenwashing” and...
What is the EU Taxonomy Regulation? The EU Taxonomy Regulation is a critical component of the EU Green Deal, which aims to achieve the transition to a modern, resource-efficient and competitive economy. The initial requirements of the EU Taxonomy must be implemented as of January 1, 2022. In this blog post, we explore the questions:...