Criteria from the EU Taxonomy Regulation (Regulation (EU) 2020/852) can be used to determine how ecologically sustainable an investment is.
What’s it all about?
- What does the Regulation on EU Taxonomy regulate?
- What environmental goals does the EU Taxonomy Regulation define?
The EU Taxonomy Regulation (Regulation (EU) 2020/852 of the European Parliament and of the Council dated 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088) defines which economic activities are considered ecologically sustainable. It contains criteria that can be used to assess whether and to what extent an investment is ecologically sustainable.
What does the Regulation on EU Taxonomy regulate?
The Regulation is a kind of classification system for ecologically sustainable economic activity and is part of the European Green Deal . It aims to establish a clear set of rules governing ecologically sustainable economic activities in order to promote more environmentally friendly business practices. The EU Taxonomy Regulation obliges large companies and stakeholders in the financial markets to publish sales and investments that are relevant to taxonomy.
What environmental goals does the EU Taxonomy Regulation define?
The EU Taxonomy Regulation focuses on six environmental goals:
1. Limiting climate change
2. Adapting to changed climate conditions
3. Responsible handling of water and maritime resources
4. Promoting a sustainable circular economy
5. Preventing and monitoring pollution
6. Conserving and regenerating biodiversity and ecosystems
💡The hospitality industry is also making great strides in the area of sustainability. An example: labels that offer guidance when buying fish.