The EU taxonomy system aims to make the sustainability of a company’s business activities fully transparent. Although the concept has been widely discussed, these discussions often overlook the practical implications for individual companies. By creating the EU Taxonomy Quick Check Tool , the Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance is providing clarity and helping small and medium-sized enterprises (SMEs) to understand the full impact of the EU taxonomy on their own business activities. Does the EU taxonomy reflect your own company’s economic activity? Is your business affected by the economic transition to greater sustainability? And is it directly or indirectly affected by reporting requirements concerning sustainability-related data?
Over 99 percent of companies in Germany are SMEs. They must comply with the EU taxonomy if they are involved in the value chains of large corporations – as suppliers, for example – or receive funding from their business banks, since the latter are in turn required to report on their compliance with the EU taxonomy. At the same time, the EU taxonomy provides SMEs with a standard-setting framework for making the economic transition to greater sustainability. The EU Taxonomy Quick Check Tool supports companies through the first stages of applying the EU taxonomy to their business by, for example, breaking down the complex set of rules into key areas of concern. “With the tool’s help, companies are better able to understand their role in the sustainability transformation, find out how they’re affected by disclosure requirements, and discover the extent to which the EU taxonomy is actually relevant to their activities. In this sense, the tool helps businesses to take appropriate action and actively transform the German economy,” explains Karsten Löffler, Head of the FS-UNEP Collaborating Centre. The Centre is happy to advise interested companies on exactly how to implement the tool’s recommendations.
Click here to access the EU Taxonomy Quick Check Tool.