The EU taxonomy aims to ensure standardization and transparency regarding sustainability among businesses throughout the EU.
The EU taxonomy focuses on climate, social responsibility, and responsible governance. It defines six areas that are particularly important for the environment and climate:
- Reduction of climate change
- Adaptation to climate change
- Sustainable use of water and marine resources
- Circular economy
- Pollution prevention
- A healthy ecosystem
A business must have activities within one of these areas to be considered sustainable. Additionally, the company must not cause harm to any of the other areas and must comply with a set of minimum requirements for social and governance conditions. These minimum requirements include that the company’s sustainable activities must align with the OECD guidelines and follow the UN’s guiding principles on human rights and labor rights.
What does this mean for your business, and what can you do about it?
To be prepared for the new requirements, your company must ensure a product that makes a significant contribution to the green transition, as well as a business model that emphasizes social responsibility and robust governance. You must also be able to document this to partners and customers. You can do this by using Valified’s platform.
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