Hello Sustainability people! How familiar are you with EU Taxonomy? Did you know that now some companies MUST report on their sustainable activities and financial contributions? If you think that this is relevant for you keep reading!

WHAT IS EU TAXONOMY? AND WHAT IT MEANS FOR YOUR BUSINESS?

The EU taxonomy is a classification system that establishes a list of economically sustainable environmental activities. It is part of the EU's plan to increase sustainable investment and put the European Green Deal into action. It specifies the technical requirements that must be met in order for an activity to be considered sustainable.

HOW DOES IT IMPACT YOUR BUSINESS?

All large companies must report their taxonomy alignment, as well as relevant information that may help investors assess their ESG performance, beginning January 1, 2023.

Small and medium sized companies can report on a voluntary basis, but will be affected by the EU’s upcoming Corporate Sustainability Reporting Directive
Investment funds will also be required to report on taxonomy alignment and collect data necessary to assess the degree of taxonomy alignment or the portfolio companies themselves.

To find out more about the EU Taxonomy requirements for reporting and its benefits read this blog and understand what are your responsibilities as a business owner.