Introduction
Currently, the European Union (EU) has developed a classification system to establish a common framework that defines which economic activities can be considered environmentally sustainable. This system is officially called the European Union Taxonomy for sustainable activities.
This document, which is part of the companies’ annual report, is mandatory for those companies that meet certain requirements such as: Public Interest Entities (PIEs), Large Companies, and Groups of Companies.
Objectives
The main objective of introducing this system is to help investors, companies, and policymakers make decisions that support the transition to a more sustainable and low-carbon economy. This system aims to:
- Clarity and Transparency: Define in a clear and coherent way what is considered a sustainable activity, thus avoiding greenwashing.
- Promotion of Green Investment: Facilitate and guide investments towards activities that contribute to environmental objectives, such as climate change mitigation, climate change adaptation, protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems.
- Support for EU Policies: Align private and public investments with the objectives of the European Green Deal, which aims to make Europe the first climate-neutral continent by 2050.
Calculation of the Green Taxonomy
The calculation that must be carried out and shown in the Non-Financial Information Statement must follow a detailed process that includes the identification, evaluation, and reporting of economic activities according to the criteria established by the European Union. This process is as follows:
- Identification of Eligible Activities: Companies must identify business activities that are eligible for the taxonomy.
- Evaluation of Substantial Contribution: Those activities identified as eligible must be evaluated to see if they contribute to one of the environmental objectives of the taxonomy.
- Do No Significant Harm (DNSH) Assessment: Once it is known which activity or activities substantially contribute to an environmental objective, they must not cause significant harm to any of the other environmental objectives.
- Compliance with Minimum Social Safeguards: Activities must also comply with minimum social safeguards, which include respect for human and labour rights, prevention of corruption and bribery, and adherence to corporate governance standards.
- Calculation of Key Performance Indicators (KPIs): After evaluating the previous steps and finding them suitable, companies must calculate and report three key performance indicators to show alignment with the taxonomy.
- Mandatory Information: Once all the information related to the calculation of the Taxonomy is known, it must be reflected in the EINF document in a clear and understandable manner.
Conclusions
The implementation of the European Green Taxonomy is a system that seeks to ensure that companies provide transparent and comparable information on environmental sustainability, thus helping investors and companies differentiate which projects affect the climate and the environment. This method is based on the recommendations of experts and scientists.
Gloria Parellada de Griñó
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28850. Torrejón de Ardoz, Madrid
Telephone : +34912054403
Email : gloria.parellada@atisa.es
Website : http://www.atisa.es