The European Union is introducing new regulatory requirements for sustainability reporting, known as the EU Taxonomy. While some companies are already reporting their activities in line with the taxonomy, others are struggling . Therefore, with a lack of data and the complexity of the new requirements. How prepared are companies for the taxonomy, a new survey by the consulting company EY shows.
Composition,With,Wind,Turbines,,Eu,Flag,And,EuGreen,Map.
Of course, the introduction of the EU GBS does not gambling database mean that all bonds must now meet this requirement, it is a voluntary standard ,” explains Alice Machová, Managing Partner at the consulting firm EY.
Already published EU climate targets Taxonomy (2021):
Climate change mitigation
Adaptation to climate change
New environmental targets (2023):
Sustainable use and protection of water and marine resources
Transition to a circular economy
Pollution prevention and control
Protection and restoration of biodiversity and global acrylonitrile styrene acrylate (asa) polymer market analysis and forecast to 2032 ecosystems
Reporting on 4 new environmental targets will begin in 2024 for eligibility and from 2025 for alignment of the company’s activities with the taxonomy.
Are companies ready for taxonomy?
From 2024, companies should disclose information about their activities in accordance with the taxonomy and against four new environmental targets . Reporting under the taxonomy will overlap with the disclosure requirements under the CSRD.
Based on previously published data, the consulting firm EY has compiled the EY EU Taxonomy Barometer survey . EY analyzed 320 companies from 17 EU countries and the survey shows that 25% of companies are able to demonstrate the suitability of their turnover with taxonomy, but more than a third of companies are unable to demonstrate activities that would support climate change mitigation and adaptation goals.
Martin Špolc: Taxonomy was requested by the financial sector
The Green Deal represents an ambitious plan that will require a large volume of private investment, in addition to the finances planned from public sources. Banks cited the main obstacles to supporting sustainable investments as mainly the lack of clarity regarding which activities are trul