The EU Taxonomy which entered into force in July 2020 is a long-awaited milestone in sustainable finance and an integral part of the European Green Deal.
It is a regulatory classification system and transparency tool aimed at investors, companies, and financial institutions to identify to what degree an economic activity is environmentally sustainable. Its implementation will be done through several Delegated Acts adopted by the Commission specifying the different objectives and criteria. The core of the taxonomy, covering climate change mitigation and adaptation should become applicable by 1 January 2022.
This factsheet was prepared for the purpose of the webinar Taxonomy and non-financial reporting: