The EU Taxonomy Framework
This article takes a general look at the EU taxonomy framework and the principles involved to permit closer comparison of similar companies, including EU taxonomy reporting requirements . The European Union’s push for a greener and sustainable future is an international imperative. In order to encourage change in the operation of businesses to be more environmentally friendly, the EU has created the European Green Deal and later the ‘ EU taxonomy for sustainable activities’ in order to help achieve the targets to be carbon-neutral by 2030. The purpose of the EU taxonomy framework is to clearly define what is meant by being ‘sustainable’ and set boundaries that everyone can understand, as well as setting EU taxonomy reporting requirements where businesses must disclose their efforts in reducing emissions. What makes a business ‘sustainable’? The objectives of the EU taxonomy are to mitigate and adapt to climate change, make sustainable use of marine resources, prevent pollution