EU's taxonomy for sustainable investments
The EU is making large and strategic investments in sustainable growth and climate neutrality. To direct investments towards sustainable technology and sustainable activities, the Taxonomy Regulation has been adopted. IVL's sustainability experts help you adapt your operations to the requirements of the regulation. We customize this support based on your needs. We provide assistance throughout the process, from understanding and implementing the requirements to using the taxonomy for strategic business development.
In recent years, the EU has established an ambitious initiative to direct developments in the region towards climate neutrality, resource efficiency, competitiveness and well-being, based on the European Green Deal. Businesses are obliged to adapt their operations and business model to the initiative.
One of several tools for realizing the initiative is the Taxonomy Regulation, which defines what is considered sustainable, with the aim of directing capital towards more sustainable investments. It helps investors invest in technology and businesses that contribute to the EU's environmental objectives.
There are also many opportunities for a business to use the taxonomy as a starting point for its own business development, to shift its operations into a sustainable direction.
For large corporations, the regulation requires the reporting of financial key figures in relation to the EU's environmental objectives, and that these are verified by a third party. Also affected are small and medium-sized companies that supply to large companies, and companies outside the EU that supply large companies inside the EU. These companies need to be familiar with the taxonomy and what it can mean for their business.
IVL can help you adapt to the taxonomy requirements.
We help you with
- General orientation and gap analysis: Understanding and interpreting what the framework means for your operations, and analyzing which of the company's activities are included by the taxonomy (
Taxonomy eligibility
), and what is required to satisfy it. - Evaluation: Determining whether an economic activity satisfies the requirements (
Taxonomy eligibility
) as defined in the regulation, i.e. that it contributes substantially to one of the EU's environmental objectives while not significantly harming other environmental objectives (Do No Significant Harm – DNSH Assessment). - Implementation in the supply chain: Supplier dialogue and evaluation of the taxonomy's requirements on sub-suppliers.
- Implementation: Support in change management, action plan for regulation fulfillment, ensuring support, and training.
- Securing minimum social safeguards: Support in meeting the requirements regarding minimum social safeguards, and in developing a systematic method for securing an acceptable minimum level for social responsibility and human rights in the value chain.