The European Commission has published its new guidelines on how companies should report climate-related risks as part of its Sustainable Finance Action Plan.
In publishing the new guidance, the Commission also released three reports by its Technical Expert Group on sustainable finance, including further details on its assessment of economic activities intrinsically linked with climate change.
“The climate emergency leaves us with no choice but transit to a climate-neutral economy model,” said Valdis Dombrovskis, vice president for Financial Stability, Financial Services and Capital Markets Union.
“Today’s new guidelines will help companies to disclose the impact of the climate change on their business as well as the impact of their activities on climate and therefore enable investors make more informed investment decisions.”
Investment groups welcomed the publication of the reports and the EU taxonomy, calling it a “key development in improving green finance”.
“The publication today of the first stage of the taxonomy relating to climate change provides transparency and guidance for directing investment towards sustainable objectives,” said Helena Viñes Fiestas, global head of stewardship & policy at BNP Paribas Asset Management.
“This is vital, as Europe needs to attract up to EUR 290 billion a year of private capital into sustainable activities to meet climate goals alone. It will benefit investors, companies and the public sector, and is a major step forward in defining green financial products.”
The full version of the EU taxonomy can be accessed here.