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The EU Taxonomy is a common classification system for sustainable economic activities. It serves as a science-based tool to help companies and investors define which of their activities are "sustainable", and therefore helps them make sustainable investment decisions and plan their strategies.
It is not a prescriptive list telling investors what to invest in, nor is it a prescriptive set of environmental performance requirements for companies. Rather, it is a dynamic classification system that requires companies to disclose the percentage of their economic activities that are sustainable, as defined in the EU taxonomy.
As a non-EU company, EU Taxonomy can affect you in two ways:
- You may have a reporting obligation within the scope of EU Taxonomy.
- You may be seeking investment from an investor subject to the EU Taxonomy or Sustainable Finance Disclosure Regulation (SFDR), or you may want to evaluate financing opportunities in the EU market. For this reason, you can consider the input you will receive from EU Taxonomy as a guide for investments and your green transformation.
1. Is your company in scope? What is your reporting deadline?
If you are subject to the CSRD, it is very likely that you will be subject to the EU Taxonomy disclosures.
2. How do you use the EU taxonomy?
