Strategy & planningFAQs

What is the EU taxonomy for sustainable activities? How does it relate to investment?

The EU taxonomy is a technical screening criteria for economic activities that can make a substantial contribution to climate change mitigation or adaptation, while avoiding significant harm to  four other environmental objectives. Asset managers operating within Europe are being required to report on the exposure of their portfolios to issues identified in the taxonomy.

What is the EU taxonomy for sustainable activities? How does it relate to investment?

The four other environmental objectives are:

  • sustainable use and protection of water and marine resources,
  • transition to a circular economy,
  • pollution prevention control, and
  • protection and restoration of biodiversity and ecosystems.