EU-TAXONOMY

 

WITH THE INTRODUCTION OF THE EU-TAXONOMY, SUSTAINABILITY IN THE COMPANY GOES FROM BEING A “NICE TO HAVE” TO A DUTY!

Since 01.01.2022, the EU Regulation (EU) 2020/852, also known as the “EU-Taxonomy Regulation”, has been in force. As a complex element of the EU Action Plan for Sustainable Finance, it serves as a classification system that evaluates economic activities of companies from a wide range of sectors based on the proportion of their sustainability.

This is intended to give the public and investors more confidence in a company’s published sustainability figures. The assessment criteria provide information on which economic activities can be described as sustainable and which conditions must be met for this to be the case. The regulation is intended to make a significant contribution to achieving the EU climate targets enshrined in the European Green Deal, promoting sectors with a low CO₂ impact and avoiding greenwashing in the future.

Who is affected by the EU-Taxonomy Regulation?

  • Industrial and service companies with more than 500 employees that are required to demonstrate the sustainability of their economic activities
  • Companies that are required to submit non-financial reports (NFRD)
  • Financial market participants who want to market a financial product as sustainable

DOES YOUR COMPANY ALSO FALL UNDER THE EU-TAXONOMY REGULATION?

DISCOVER TAXONOFY

With TAXONOFY from WAVES, companies can assess the degree of sustainability in their economic activities according to turnover, capital- and operating expenses and in compliance with the EU-Taxonomy guidelines. The results can be used as a starting point to continuously improve a company’s taxonomy rating, to measure its sustainability contribution at the push of a button and to always be on the safe side in terms of compliance.

An interface to other WAVES products on the Sustainability Management Platform offers additional possibilities for the holistic calculation and presentation of key figures for an active steering of a company in the direction of sustainability.

Mock up visual Taxo Tool.

EU-TAXONOMY SIMPLY EXPLAINED

What does EU-taxonomy eligible mean?

The EU-Taxonomy is designed to provide clarity to investors and protect them from greenwashing. Once companies start disclosing their alignment with the technical audit criteria, this will provide detailed information on the actual environmental impact and sustainable performance of business activities. The company is thus considered “taxonomy-ready” in the first step.

What does EU-taxonomy aligned mean?

An economic activity is EU-Taxonomy compliant if it meets the three technical screening criteria:

  • makes a significant contribution to at least one environmental objective
  • does not significantly compromise any other environmental objective
  • meets a minimum level of social safeguards.

GOALS OF THE EU-TAXONOMY

The EU-Taxonomy attempts to define the assessment criteria and associated technical standards for 6 different environmental objectives. As of September 2022, the first two targets “climate change mitigation” and “climate change adaptation” have been defined. Others will follow by the end of 2022.

In the future, sustainability will no longer be a “nice to have”, but reporting on sustainability will become a duty! We enable companies to carry out the information on the taxonomy independently and thus become more independent of external partners. In the future, the information on the taxonomy must be submitted at least once a year or at the latest when there is a change in the economic activity.

How do sustainable economic activities define themselves?

The Taxonomy Ordinance defines economic activities as sustainable based on 3 criteria:

Do No Significant Harm: No other objective may be disregarded as a result. Basic human rights and working conditions must be respected.
Contribute to at least one of the six environmental goals listed in the taxonomy.
Compliance mit Minimum Safeguards: Minimum protection for occupational safety and compliance with human rights.

WHITE PAPER

Learn what EU-Taxonomy is, who it affects, and how to successfully navigate the requirements of current regulations and standards.

DO YOU WISH ADVICE ON EU-TAXONOMY?

Would you like to receive individual advice from our experts on EU-Taxonomy? Take a look at our various consulting services.

DO YOU WISH ADVICE ON EU-TAXONOMY?

Would you like to receive individual advice from our experts on EU-Taxonomy? Take a look at our various consulting services.