Service Description

The European Union (EU) Taxonomy is part of the European Green Deal, the ElJs plan to reach cimate neutrality by 2050, and is a crucial element of the European Sustainable Finance Strategy. It is a classification establishing which economic activities are sustainable according to climate, environmental and social criteria. Who reports? The EU Taxonomy currently applies to more than 11.000 organisations: Large companies and financial institutions with more than 500 employees (with a balance sheet of more than 20MC or a turnover of more than 40MC) which are already required to provide a declaration of extra-financial performance under the Non-Financial Reporting Directive Organisations that use this information: financial market players, financial supervisory institutions (such as central banks) as well as all Member States when they establish public measures, standards or labels for green financial products or green bonds. From 2024, large companies and financial institutions that are already required to provide a declaration under the NFRD and meet 2 of the 3 following cnteria: 250 employees; A balance sheet of more than 25M Euros; Aturnover of more than 50M Euros From 2025 the timeline will align with that of CSRD -From the 2025 financial year (publication in 2026): large companies not subject to the NFRD What is reported? Since January 2022, companies and financial institutions have been required to publish their analysis of eligibility for the European taxonomy. In 2023 for companies and in 2024 for financial institutions, alignment will have to be communicated publicly The eligibility analysis represents an analysis of the activities of the company or the activities financed that are considered by the European Union to be able to contribute contribute significantly to the ecological transition. The shares of tumover, operating expenditure (OPEX) and capital expenditure (CAPEX) of these activities must be published. The alignment study consists of verifying that the eligible activities meet the technical criteria ensuring that they are sustainable. The economic activities must contribute to one of the six environmental objectives below and not harm the other objectives, while respecting social rights: 1. Climate change mitigation 2. Climate change adaptation 3. Sustainable use and protection of water and marine resources 4. Transition to a circular economy 5 Pollution prevention and control 6. Protection and restoration of biodiversiy