EC Releases Sustainable Finance Taxonomy Compass
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act. EC also notes that the EU Taxonomy Climate Delegated Act is under review by the European Parliament and the Council. Thus, it has not yet entered into force and has not yet been published in the Official Journal of the European Union. Going forward, the taxonomy compass will be updated to include the future delegated acts specifying technical screening criteria for additional economic activities substantially contributing to the climate objectives and the other environmental objectives of the Taxonomy Regulation. It will also reflect reviews of the delegated acts in the future.
The EU Taxonomy Compass aims to make the content of the EU taxonomy easier to access for a variety of users. It will enable users to check which activities are included in the EU Taxonomy (taxonomy-eligible activities), which objectives they substantially contribute to, and what criteria they have to meet. It is important to note that minimum safeguards (social standards) have to be met for an economic activity to be considered taxonomy-aligned. The EU Taxonomy Compass also aims to make it easier to integrate the criteria into business databases and other IT systems. The content of Taxonomy Compass can be accessed in two ways: users can either see a matrix that displays the economic activities per environmental objective, or they can check which economic activities are considered taxonomy-relevant for a given sector and view the technical screening criteria applicable to them. Users can also download the contents of the EU Taxonomy Compass in XLSX or JSON format.
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Keywords: Europe, EU, Banking, Insurance, Climate Change Risk, ESG, Sustainable Finance, Taxonomy Regulation, Taxonomy Compass, Delegated Act, EC
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