Need to know — EU Taxonomy
This Need to know discusses the EU Taxonomy Regulation that the EU has implemented as part of its broader sustainable finance strategy. The EU Taxonomy is a classification system of economic activities that can be considered ‘environmentally sustainable’ with one (or more) of the six EU environmental objectives laid out in the Regulation. The Regulation sets mandatory requirements on disclosure for those in scope of the Non-Financial Reporting Directive (NFRD) (and the Corporate Sustainability Reporting Directive (CSRD) once it comes into effect). Non-EU entities that have debt or equity securities traded on EU regulated markets may be in scope as a result of the rules of the specific EU regulated market. If not, they will be brought into scope once the CSRD comes into effect.
