The EU taxonomy provides a system for classifying economic activities as environmentally sustainable.
The formal basis for its functioning is Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment (EU Taxonomy) was adopted on 8 June 2020 and entered into force on 12 July 2020.
The aim of the system is to support companies and investors in making decisions that contribute to redirecting capital towards investments that support climate and environmental protection.
Who is affected by the Taxonomy Regulation?
The EU taxonomy establishes an absolute obligation to disclose information on the compliance of economic activities or investments with the criteria set out in the regulation for:
- non-financial companies covered by the Accounting Directive,
- financial undertakings covered by the Accounting Directive.
Requirements
For a business activity to be considered environmentally sustainable, it must meet the following conditions:
- making a significant contribution to the achievement of at least one environmental objective,
- not causing significant harm to any of the other five environmental objectives (DNSH principle),
- compliance with minimum safeguards (procedures to ensure compliance with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the 8 core conventions indicated in the International Labour Organization Declaration on Fundamental Principles and Rights at Work),
- compliance with technical qualification criteria.
Environmental objectives of the EU Taxonomy:
- mitigating climate change,
- adaptation to climate change,
- sustainable use and protection of water and marine resources,
- transition to a circular economy,
- pollution prevention and control,
- protection and restoration of biodiversity and ecosystems.
Services provided by EBDN Project
regarding the requirements of the EU Taxonomy, our specialists:
- conduct a preliminary assessment of compliance with the requirements for existing activities/resources or a newly planned investment,
- identify areas that may have a negative impact on the assessment, ,
- will develop recommendations on the actions that should be implemented to demonstrate compliance with its requirements.
- will prepare a final report confirming that its requirements have been met
