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 and further harm to biodiversity and restore ecosystems that were affected by climate change. In order for a business to be classed as sustainable, they are required to contribute to one objective but also not to have any processes that can conflict with any of these objectives. It is mandatory for businesses to show the efforts and the investments that they are making towards these objectives by following the EU taxonomy reporting requirements.

EU taxonomy reporting requirements

The EU taxonomy has mandatory requirements for businesses to be transparent about what their operations involve and report their progress on reducing their environmental impact. These EU taxonomy reporting requirements will ensure that businesses are making an effort towards the target that was established in the European Green Deal, as well as prevent businesses from ‘greenwashing’.

The primary indicator of a company's attitude on its environmental impact is their ability to communicate. A company that is self-used by design and is able to outline their green function inside activities as needed by the EU taxonomy reporting requirements are more likely to achieve sustainable results than one that continues to operate on their past activities with minimal changes. An awareness of the activities that a company does that adds to its ecological footprint is essential to any ecologically specific goals.

Eco-friendly businesses

I am currently studying the customer’s thoughts of eco-friendly businesses in the UK and in the meantime the earlier findings of Change Agents UK’s study of UK firms, to which they had committed some sizable efforts and expenditures towards the objectives as reported per the EU taxonomy reporting requirements.

The customers wish to use an eco-friendly service provider if necessary. These termed eco-friendly customers considered such factors as environmental awareness, innovation, continuous improvement, and international standards to be readily accepted as advantages in making their defence against outsourcing providers. Confirming the understanding of sustainable production, I was surprised to see another indicator - a strong relationship between a firm's former activities and its current activities in the field of environmentally sustainable goods and services, where this company had achieved some promising status.

The third study leads me to conclude with confidence that all of the presented indicators seem to be substantive, well laid out information as needed by the EU taxonomy reporting requirements. The fact that this element presumes a possibility for change indicates that one may not be able to reverse course without losing the progress that they are experiencing consistently. It's not too much of a stretch to say that these indicators show that sustainable goals will be easily met if the ones described above were to occur. The economic challenges that the world is experiencing is presenting the challenge of transferring the technical knowledge, a huge sector of the preparedness for transition is manifested primarily in the same business areas in which these indicators are analysed, with the IT sector being one of them.

The business of outsourcing simply does not dismiss the ambitions of sustainable economic growth if they express it into action. Some companies insist that outsourcing is an inherent and inevitable career tool present in the traditional business, for some IT professionals the alternative of escapism on this stage is not an option, either you become a post-retirement, either you become the sort of employer you hope to be in the future or you'll staying supporting to the image of convenience and comfortability to those who leap into the arms of your current, documented reports on the present business processes. It's this kind of company that creates certain value for the firm, the effort to be in a position to live up to these obligations (by using initiatives based on realising the benefits) without losing their unique abilities to prove the good of the firm is simply stated in a productive way.