Explanator: What is the EU’s sustainable finance taxonomy?

Explanator: What is the EU's sustainable finance taxonomy?

WHO DOES IT APPLY TO? With a myriad “eco-friendly” investment products on the market, the rules also aim to stamp out greenwashing, whereby organisations exaggerate their environmental credentials. From next year, providers of financial products — including pension providers — in the EU must disclose which investments comply with the taxonomy’s climate criteria. For each investment, fund or portfolio, they must disclose what share of underlying investments comply with the rules.

WHAT’S IT FOR? Here’s what you need to know.

The EU’s goal to eliminate its net emissions by 2050 will require huge investments, much of it private funding. The taxonomy aims to make green activities more visible and attractive to investors. Starting next year, the long-awaited rules will decide which economic activities can be labelled as a sustainable investment in the EU.

The taxonomy is a long list of economic activities — from steel plants, to wind power generation, to building renovations — plus detailed environmental criteria that each must meet to be deemed green. The rules classify three types of green investments. WHAT MAKES A ‘GREEN’ INVESTMENT?

That means polluting companies can get recognition for making green investments. For example, if an oil company invested in a wind farm, it could label that expenditure as green. Large companies and listed firms must also disclose what share of their turnover and capital expenditure complies.

The News Highlights

  • Explanator: What is the EU’s sustainable finance taxonomy?
  • Check the latest News news updates and information about business, finance and more.
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
The Eagles have a favourable travel schedule through the end of 2021, which includes both games against WFT

The Eagles have a favourable travel schedule through the end of 2021, which includes both games against WFT

As first pointed out by ProFootballTalk, Philadelphia’s Week 10 trip to Denver on November 14 is the last time during the season the Eagles will likely have ...
Pittsylvania / Danville Health District plans to vaccinate children against COVID-19

Pittsylvania / Danville Health District plans to vaccinate children against COVID-19

Additionally, Spillman said if children get the vaccine, more students can resume in-person learning and participate in sports that are key for youth ...
Beware: scammers pretending to be officers demanding money

Beware: scammers pretending to be officers demanding money

Please make your friends and family aware of this ongoing scam. If this happens to you, hang up and call your local law enforcement agency to report it. Source ...
Warthog A-10 pilots are using the Digital Combat Simulator video game to train in VR

Warthog A-10 pilots are using the Digital Combat Simulator video game to train in VR

Source Using DCS, “we can now demonstrate exactly what it looks like flying on the wing of a tanker and subsequently flying to the correct position ...
How to find a safe and secure service provider for your business

How to find a safe and secure service provider for your business

  Related: 4 Tips for Outsourcing in 2021 Ask for security certifications Such high stakes should not discourage businesses from ...
MORNING BUSINESS REPORT: Student loan is not worth it, help with internet account, large wind farm News

Shelter rehabilitation projects need more money as costs skyrocket

“The cost of materials and construction overall have really skyrocketed over the last year or so,” Weatherly said. “So a project that was conceived and applied ...
Longmont’s Osprey Nest camera is Repaired

Longmont’s Osprey Nest camera is Repaired

Two cameras, one over the nest and one on the ground, live stream what’s happening at the Boulder County Fairground’s nest, just east of the Cattail Pond. ...
The free Next-Gen Upgrade for Subnautica is now available on Xbox Game Pass.

The free Next-Gen Upgrade for Subnautica is now available on Xbox Game Pass.

This means you can also access it if you play the game via Xbox Game Pass, and based on what we’ve seen so far, the visuals have been noticeably improved, ...
Businesses will start giving rides this summer

Businesses will start giving rides this summer

Reistroffer said he had run into some issues with the city’s licensing department, which had informed him that there could only be one driver licensed per ...
MORNING BUSINESS REPORT: Student loan is not worth it, help with internet account, large wind farm News

Jersey City financial advisor sentenced to 27 months for stealing $ 450,000 from clients

In addition to the prison term of 27 months Herrera was sentenced to three years of supervised release. Herrera, 37, directed the bank tellers to withdraw ...
Show next
Compsmag - Latest News from tech, business and health
Logo