The necessary transition to a low-carbon European economy requires the financing of private capital that will have to be directed towards climate-conscious businesses and sustainable development. The Taxonomy therefore makes it possible to identify the environmentally sustainable economic activities that can contribute to the achievement of the net-zero emissions goal by 2050 and the related selection criteria.
To be aligned with the EU Taxonomy, a company’s activity will have to meet the following criteria:
- Contribute positively to at least one of the six environmental goals
- Mitigation of climate change
- Adaptation to climate change
- Sustainable use and protection of marine water resources
- Transition to a circular economy including waste reduction and recycling
- Pollution prevention and control
- Protection of biodiversity and ecosystem health
- Not produce a negative impact on any other objective
- Be carried out in compliance with minimum social guarantees
Aligning its business with the European Taxonomy allows a company to improve its overall environmental performance, attract new and increased investments, and advance its positioning and reputation in the eyes of consumers and other business stakeholders.