Author: Greenomy – Greenomy.io
The EU Taxonomy regulation officially hit the ground running in 2020, establishing a classification system of environmentally sustainable economic activities. Packaged together with the Sustainable Finance Disclosure Regulation (SFDR) and the Corporate Sustainability Reporting Directive (CSRD), which is set to replace the current Non-Financial Reporting Directive (NFRD), the EU Taxonomy calls for financial institutions and corporates to screen, assess and report on the extent to which their investments and undertakings are environmentally sustainable and aligned with the regulation.
While the EU Taxonomy aims to help implement the European Green Deal and push EU financial institutions and companies to make more environmentally sound decisions, it will have an impact on entities beyond the EU. At the same time, with the rapid increase of green taxonomies across the globe, the EU Taxonomy is already viewed as a potential reference point or benchmark.
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