EU Taxonomy - TEG final report
What is the EU Taxonomy
The EU Taxonomy is a tool to help investors, companies,
issuers and project promoters navigate the transition to a
low-carbon, resilient and resource-efficient economy.
The Taxonomy sets performance thresholds (referred to as
‘technical screening criteria’) for economic activities which:
• make a substantive contribution to one of six
environmental objectives (Figure 1);
• do no significant harm (DNSH) to the other five, where
relevant;
• meet minimum safeguards (e.g., OECD Guidelines on
Multinational Enterprises and the UN Guiding Principles
on Business and Human Rights)
The performance thresholds will help companies, project
promoters and issuers access green financing to improve
their environmental performance, as well as helping to
identify which activities are already environmentally friendly.
In doing so, it will help to grow low-carbon sectors and
decarbonise high-carbon ones.
The EU Taxonomy is one of the most significant
developments in sustainable finance and will have wide
ranging implications for investors and issuers working in the
EU, and beyond.
Link to the report