The EU Taxonomy is part of the European Green Deal, the EU’s plan to reach climate neutrality by 2050. It aims to calculate the sustainability shares of economic activities according to climate, environmental and social criteria.
Requirements have already started: Since January 2022, 11,000 companies and financial institutions have been asked to disclose more information under this regulation. From 2025, 50,000 companies will be progressively required to align.
It is also relevant to non-EU businesses as other jurisdictions develop green taxonomies and as CDP has now added taxonomy focused questions to its Climate Change Questionnaire.
This factsheet explains: