Assessment of the proportion of activities aligned with the EU Taxonomy

  • Radia Guira

Understanding the EU Taxonomy and its relevance to ESG scoring is critical for businesses seeking to align their activities with sustainable and green criteria. The EU Taxonomy is a classification system that establishes a list of environmentally sustainable activities to guide investment and development towards a low-carbon economy. Accurately assessing the proportion of your company’s activities that align with the EU Taxonomy can significantly enhance your ESG score and demonstrate your commitment to sustainable practices.

Introduction to the EU Taxonomy

The EU Taxonomy is a tool that aids investors, companies, issuers, and project promoters in navigating the transition to a low-carbon, sustainable economy. It lists specific economic activities and the criteria they must meet to be considered “environmentally sustainable.” For a company, being aware of these criteria is the first step towards an accurate assessment of alignment. To better understand the benefits of aligning with the EU Taxonomy, please visit Eco-Act’s detailed explanation.

How to Assess Your Company’s Alignment

Assessing your company’s alignment with the EU Taxonomy involves a detailed analysis of your operations. You’ll need to identify which of your activities qualify under the Taxonomy and the extent to which they meet the prescribed technical screening criteria. It’s a process that requires thorough understanding and often, the collection of specific environmental performance data. Companies like Schaeffler provide excellent examples of how they report on their alignment with the EU Taxonomy. You can find Schaeffler’s report and gain insights into their methodology by visiting Schaeffler’s Sustainability Report.

Best Practices for Completing Your EU Taxonomy Assessment

To complete your assessment effectively, there are several best practices you should follow. These involve gathering detailed information on your business activities, understanding the technical screening criteria for each activity, and documenting evidence that demonstrates how your activities contribute to environmental objectives. Beiersdorf’s annual report, which includes their approach to EU Taxonomy reporting, can serve as a good practice reference. Visit Beiersdorf’s EU Taxonomy Reporting to explore their methodology.

To ensure the accuracy of your ESG scoring, it’s essential to take your time with the EU Taxonomy assessment, and when in doubt, seek expert advice. By following these steps and utilizing the resources provided, you’ll be well on your way to a comprehensive understanding of the alignment of your activities with sustainable and green criteria. Remember, the transition to a sustainable economy is not just a trend, but a fundamental shift in how businesses operate. Being proactive and informed will not only boost your ESG score but will also position your company as a leader in sustainability.