As an integral part of the European Green Deal, the EU Taxonomy Regulation entered into force in July 2020 to drive sustainability and environmental goals in the financial sector and corporate world. It serves as a vital tool for classifying economic activities based on their sustainability performance, with the aim of promoting sustainable finance and responsible investments. By defining clear criteria for what constitutes environmentally sustainable activities, the EU Taxonomy provides businesses, investors, and policymakers with a standardized framework to assess and disclose their environmental performance. This powerful tool not only enhances transparency and accountability, but also plays a crucial role in steering the European Union towards its ambitious sustainability objectives - particularly in achieving carbon neutrality and environmental sustainability by 2050.
