Learn about the EU taxonomy, which determines when business activities are defined as sustainable.
The EU's Green Deal aims to transform the EU into a modern, resource-efficient, and competitive economy. A key goal is to reduce net greenhouse gas emissions to zero by 2050. The EU has launched an ambitious transition plan to ensure both public and private financing for sustainable transformation. All businesses will be affected.
The cornerstone of the EU's economic transition is a new official EU definition of sustainability—the so-called "EU taxonomy." The EU taxonomy establishes precise criteria for when an activity is considered sustainable within the EU. Over the next 2-5 years, the taxonomy will be implemented as a standard for a wide range of frameworks within the financial system—this includes sustainability reporting requirements for all companies, standards for green bonds, and disclosure requirements for various financial products. As consumers, we should be able to easily identify whether a company is sustainable based on a unified EU definition.
What does this mean for your business?
For your business, this means you need to be prepared to answer detailed questions from customers, partners, and investors about your business model and whether it meets the EU's sustainability requirements. You can report and measure this using Valified's platform.
Didn't find what you were looking for? Contact us via chat in the bottom right corner.