BRUSSELS, Feb. 1, 2022 /PRNewswire/ — Today, The Conference Board published a report on the EU’s new Taxonomy regulations. The study by the member-driven think tank highlights the ambiguity of disclosure requirements and recommends a Taxonomy reporting roadmap for companies that have not begun their reporting journey.
As the analysis details, the EU aspires to be climate neutral by 2050 by accelerating and incentivizing investment in sustainable activities. In the absence of any definition or systematic guidance on what is sustainable, the EU has introduced a framework that classifies «green» economic activities. A company then uses that system to report and disclose the extent to which its business activities align with the EU Taxonomy’s definition of «sustainable.»
While implementation timelines have been extended to give the market a bit more time to prepare, the timeframe remains tight given the amount of work required to prepare for the reporting. Companies in scope will need to report on their «eligible» economic activities as of 2022. And starting in 2023, they will need to report the Taxonomy alignment of their activities.
To help companies prepare for what’s ahead, the report offers multiple steps organizations can take:
"There is an alarmingly low level of action about the implications of the EU’s Taxonomy by European companies," said Sara Murray, Managing Director, International, of The Conference Board. «In releasing our report now, we are bringing this important issue to the attention of our Members and making it clear to them that this is an issue they need to prioritize if they have yet to do so. This issue has significant implications for a broad range of stakeholders—not just for investors and asset managers.»
"While Europe may continue to forge the next iterations of Taxonomy disclosure regulations, companies should also keep a close eye on developments in other jurisdictions," said Anuj Saush, Leader of the Governance & Sustainability Center at The Conference Board. «The UK, as well as Canada, China, Malaysia, Singapore, and South Africa, are also working on a taxonomy.»
About The Conference Board The Conference Board is the member-driven think tank that delivers trusted insights for what’s ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org
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