The extensive list of criteria set out by the EU Taxonomy, combined with the anticipated updates, makes it difficult for companies to understand where to start and how to assess alignment with the EU Taxonomy. The general complexity of alignment might even encourage companies to adopt a “wait and see” attitude, thereby potentially losing out on the first mover advantage.
Due to the developments and complexity revolving around the EU Taxonomy, we highly encourage organizations to take a pragmatic approach by:
- creating internal knowledge and awareness on the topic of Taxonomy
- establishing ownership via identification of which internal stakeholders to involve for EU Taxonomy data gathering and reporting purposes
- linking the EU Taxonomy to your corporate strategy
- performing eligibility and alignment analysis
- performing ‘’pre-alignment’’ analysis against the four draft environmental objectives to determine possible alignment for 2023 reporting data
- performing a minimum social safeguards gap analysis
- carrying out a human rights due diligence
- conducting a physical climate risk assessment
Our team at Sustainalize/ERM has vast experience advising companies across multiple sectors and industries through the complex regulatory environment of the EU Taxonomy. Please feel free to get in touch with one of our experts if you would like to discuss the EU Taxonomy and its implications for your company.
For further reading about the EU Taxonomy, we invite you to have a look at our recently published research report ‘Over Two Years with the EU Taxonomy‘, our latest expert briefing.