Leading the Way with EU Taxonomy Regulation Updates
Hey there! We have some exciting news to share with you. The European Union (EU) has introduced an updated version of its Taxonomy Regulation this summer and Evercity didn't waste any time, so we are proud to announce that we have already incorporated them in our EU Taxonomy screening tool.
What is the EU Taxonomy Regulation?
For those who are new to the concept, the EU Taxonomy Regulation is a framework that classifies economic activities based on their sustainability performance. It sets clear standards for what can be considered environmentally sustainable, helping investors and businesses make informed decisions aligned with the EU's sustainability goals.
As part of the European Green Deal, the EU Taxonomy Regulation aims to make Europe the world's first climate-neutral continent by 2050. By setting clear sustainability standards, the EU promotes green investments, drives innovation, and accelerates the transition to a low-carbon economy.
EU Taxonomy is closely related to the EU Corporate Sustainability Reporting Directive (CSRD) and other regulations and standards. These include the Non-Financial Reporting Directive (NFRD), which will be replaced by CSRD as of fiscal year 2023, the Sustainable Finance Disclosures Regulation (SFDR), the Corporate Sustainability Due Diligence Directive (CSDD), and the EU Green Bond Standard.
What's new?
On June 13, 2023, the European Commission (EC) made significant strides towards promoting sustainability by publishing several crucial documents. These include:
The Environmental Delegated Act: This act outlines the technical screening criteria for the four additional environmental objectives of the Taxonomy Regulation. These objectives encompass the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems.
Changes to the Disclosures Delegated Act: The Environmental Delegated Act also incorporates amendments to the Disclosures Delegated Act, which involve updates to the mandatory reporting templates. These changes ensure that companies accurately and comprehensively disclose their environmental impact.
Amendments to the Climate Delegated Act: The Climate Delegated Act has also been revised to include modifications and new activities related to the climate-related environmental objectives of climate change mitigation and climate change adaptation. These amendments strengthen the EC's commitment to combating climate change and fostering sustainability.
The updated EU Taxonomy Regulation now covers a broader range of economic activities, including Disaster risk management, Services, and Accommodation activities.
How does it impact businesses and investors?
By providing clear guidelines on sustainable activities, it allows companies to showcase their commitment to environmental and social responsibility. This can enhance their reputation, attract investors, and open up new opportunities for growth.
For investors, the EU Taxonomy serves as a valuable tool for assessing the sustainability performance of potential investment targets. It enables them to identify companies that align with their values and contribute to a more sustainable future.
The SFDR and the Taxonomy Regulation are closely connected. As a result, investments in economic activities that align with the Taxonomy can be automatically classified as “sustainable investments”.
How does Evercity's EU Taxonomy screening tool make a difference?
Evercity has always been at the forefront of sustainable finance, and our commitment to driving positive change is evident with the integration of the updated EU Taxonomy Regulation into Evercity green screening tool. By doing so, Evercity platform empowers its users to easily screen and identify activities that meet the highest sustainability standards, and help businesses to report in a more efficient way.
With this seamless integration, Evercity's EU Taxonomy screening tool provides companies with an unparalleled resource for evaluating the sustainability performance of their activities. This tool equips companies with the knowledge and confidence to navigate the complex landscape of regulation.
Additionally, Evercity's EU Taxonomy screening tool streamlines the investment evaluation process, saving investors valuable time and resources. Leveraging the power of data and advanced analytics, the screening tool empowers investors to make informed decisions, facilitating the transition towards a more sustainable economy.
We believe that technology is power, and by automation we can empower more investors and businesses to make screening and reporting process more efficient!