The EU Taxonomy: A beginner's guide
The European Union (EU) Taxonomy is a framework designed to promote sustainable finance. It provides a common language for identifying environmentally sustainable economic activities. Introduced as part of the EU's broader Sustainable Finance Action Plan, the Taxonomy Regulation aims to channel investments towards projects that contribute to climate change mitigation and adaptation. It also aims to prevent "greenwashing" – the practice of presenting investments as more environmentally friendly than they actually are. In this blog, we'll delve into the very basics of the EU Taxonomy, exploring what it is, how it works, and what organisations need to do to comply.