The EU Taxonomy Regulation introduced environmental disclosure requirements for companies and financial market participants. The taxonomy aims to create consistent standards for activities that are described as ‘environmentally sustainable’. A key tenet of this regulation is the recognition that not all environmentally-friendly activities have a tangible impact on environmental goals.
The EU Taxonomy Regulation includes six environmental objectives:
To be aligned with the taxonomy, activities must comply with the following steps:
The taxonomy also outlines two main types of activities that substantially contribute to these goals: