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EU Taxonomy for Sustainable Activities

10 May 2024

The EU Taxonomy Regulation sets out a classification system that defines criteria for economic activities that are aligned with a net zero trajectory by 2050 and the broader environmental goals other than climate.

IAASA undertook a desktop examination of the Taxonomy Regulation disclosures of a sample of issuers’ financial statements and has today published a Paper setting out its findings from that examination to provide stakeholders with information on the extent to which those issuers undertake economic activities that are aligned with Europe’s net zero trajectory by 2050.

The Taxonomy Regulation requires entities to disclose how and to what extent their activities are associated with environmentally sustainable economic activities.

IAASA echoes ESMA’s call that issuers use the guidance and tools that the European Commission has published, including guidance on the interpretation and application of certain criteria and disclosures, and online tools to assist undertakings in their Taxonomy reporting.

IAASA highlights the European Commission’s statement highlighting the role of the Taxonomy as a “common language” which plays a key role in the EU’s Sustainable Finance framework, and which can be further used by undertakings to plan investments and set targets for their transition.

The report is available here.