A simple and practical guide for users
Source : https://ec.europa.eu/sustainable-finance-taxonomy/home?reference=3.8
The EU Taxonomy Navigator is a user-friendly website that offers a series of online tools to help users better understand the EU Taxonomy in a simple and practical manner, ultimately facilitating its implementation and supporting companies in their reporting obligations.
1. About the EU Taxonomy Compass
The EU Taxonomy Navigator offers four tools to help you navigate the EU Taxonomy.
The EU Taxonomy Compass provides a visual representation of the contents of the EU Taxonomy. It aims to make the contents of the EU Taxonomy easier to access for a variety of users. It enables users to check which activities are included in the EU Taxonomy (Taxonomy-eligible activities), to which objectives they substantially contribute and what criteria have to be met for activities to be considered Taxonomy-aligned. It is important to note that minimum safeguards (social standards) have to be met as well for an economic activity to be considered Taxonomy-aligned. The EU Taxonomy Compass also aims to make it easier to integrate the criteria into business databases and other IT systems.
The EU Taxonomy Compass shows the contents of the Taxonomy Delegated Acts that entered into force and were published in the Official Journal, including:
- The Climate Delegated Act published in the Official Journal on 9 December 2021 and applicable since January 2022.
- The Complementary Climate Delegated Act published in the Official Journal on 15 July 2022 and applicable since January 2023.
- The Environmental Delegated Act published in the Official Journal on 21 November 2023 and to apply as of January 2024.
- The amendments to the Climate Delegated Act published in the Official Journal on 21 November 2023 and to apply as of January 2024.
The EU Taxonomy Compass will be updated to include future delegated acts specifying technical screening criteria for additional economic activities substantially contributing to the climate objectives and the other environmental objectives of the Taxonomy Regulation. It will also reflect reviews of the delegated acts in the future.
2. EU Taxonomy Calculator – a step-by-step guide on reporting obligations
The EU Taxonomy Calculator is an interactive, educational tool that aims to help users understand and support with the reporting obligations laid down in the Disclosures Delegated Act under Article 8 of the Taxonomy Regulation.
Under Article 8(1) of the Taxonomy Regulation large undertakings that are required to publish non-financial information pursuant to the Corporate Sustainability Reporting Directive (CSRD) have to disclose information on how and to what extent their activities are associated with environmentally sustainable economic activities. For this, the Disclosures Delegated Act specifies key performance indicators (KPIs) related to turnover, capital expenditure (CapEx) and operational expenditure (OpEx) that non-financial undertakings must disclose.
The EU Taxonomy Calculator provides users with an example of the different steps that a non-financial undertaking would need to go through to fill out the templates provided in the Disclosures Delegated Act for the purpose of identifying their Taxonomy-eligibility (1) and alignment (2) , and calculating their KPIs.
So far, the EU Taxonomy Calculator is only available to calculate the turnover, CapEx and OpEx KPIs of non-financial undertakings for the objective of Climate Change Mitigation.
Please note that the EU Taxonomy Calculator does not replace the reporting of companies according to the Disclosures Delegated Act.
3. FAQs repository – an overview of questions and answers on the EU Taxonomy and its delegated acts
See
https://ec.europa.eu/sustainable-finance-taxonomy/home?reference=3.8
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Shaping our future
The EU Taxonomy is a classification system that helps companies and investors identify “environmentally sustainable” economic activities to make sustainable investment decisions. Environmentally sustainable economic activities are described as those which “make a substantial contribution to at least one of the EU’s climate and environmental objectives, while at the same time not significantly harming any of these objectives and meeting minimum safeguards.”
The EU Taxonomy is not a mandatory list for investors to invest in. It does not set mandatory requirements on environmental performance for companies or for financial products. Investors are free to choose what to invest in. However, it is expected that over time, the EU Taxonomy will encourage a transition towards sustainability in order to achieve the EU’s climate and environmental goals.
Why do we need an EU Taxonomy?
The EU Taxonomy aims to help scale up investments in projects and activities that are necessary to reach the objectives of the European Green Deal – our plan to make the EU’s economy environmentally sustainable, adhering to the following principles and objectives:
For that we need reliable tools to support companies in their transition towards a sustainable economy and climate neutrality. The EU Taxonomy is one such tool to help investors identify environmentally sustainable economic activities, promote a transition to a zero-carbon future and guide funding towards solutions to tackle the climate crisis and prevent further environmental degradation:
- It creates a frame of reference for investors and companies;
- It supports companies in their efforts to plan and finance their transition;
- It protects against greenwashing practices;
- It helps accelerate financing of those projects that are already sustainable and those needed in the transition.
How can activities qualify under the EU Taxonomy?
The Taxonomy Regulation also sets out 4 overarching conditions that an economic activity must meet in order to qualify as environmentally sustainable:
- Making a substantial contribution to at least one environmental objective;
- Doing no significant harm to any of the other five environmental objectives;
- Complying with minimum safeguards; and,
- Complying with the technical screening criteria set out in the Taxonomy delegated acts.
The Taxonomy Regulation also sets out 4 overarching conditions that an economic activity must meet in order to qualify as environmentally sustainable:
- Making a substantial contribution to at least one environmental objective;
- Doing no significant harm to any of the other five environmental objectives;
- Complying with minimum safeguards; and,
- Complying with the technical screening criteria set out in the Taxonomy delegated acts.
To ensure that an economic activity substantially contributes to one of these objectives, while not doing significant harm to any of the other five objectives, the EU sets performance criteria (so called “technical screening criteria”) in delegated acts (3) . So far, criteria have been set for economic activities that can make a substantial contribution to climate change mitigation and climate change adaptation (see Climate Delegated Act and Complementary Climate Delegated Act).
What are the disclosure obligations included in the EU Taxonomy?
Companies that fall under the scope of the Corporate Sustainability Reporting Directive (CSRD) have to report in their annual reports to what extent their activities are covered by the EU Taxonomy (Taxonomy-eligibility) and comply with the criteria set in the Taxonomy delegated acts (Taxonomy-alignment). Other companies that do not fall under the scope of CSRD can decide to disclose this information on a voluntary basis to get access to sustainable financing or for other business-related reasons.
The reporting obligations and timelines (4) for undertakings are set out in the Disclosures Delegated Act supplementing Article 8 of the Taxonomy Regulation. The Disclosures Delegated Act specifies the content, methodology and presentation of information to be disclosed by financial and non-financial undertakings concerning the proportion of environmentally sustainable economic activities in their business, investments or lending activities.éressé. Ecrire pour une personne en particulier signifie que si c'est authentique pour l'un, c'est authentique pour le reste.
For more information about the EU Taxonomy and the EU Taxonomy delegated acts, please refer to the main webpage on the EU Taxonomy.
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For more information about the EU Taxonomy and the EU Taxonomy delegated acts, please refer to the main webpage on the EU Taxonomy.
