EU Taxonomy: the time to act is now has been saved
EU Taxonomy: the time to act is now
How to manage your EU Taxonomy reporting requirements timely
The EU Taxonomy is the new legally binding screening standard for EU corporate non-financial reporting and sustainable finance products, and the first EU Taxonomy reports are due on January 1st 2022. Our solution provides a structured and efficient approach to manage your sustainability reporting requirements timely.
What is happening
To meet the EU’s climate and energy targets for 2030 and reach the objectives of the European green deal, it is vital that investments are directed towards sustainable projects and activities. To drive this redirection, the European Commission enacted the EU Taxonomy: a classification system, that provides companies, investors and policymakers with appropriate definitions for which economic activities can be considered environmentally sustainable. Listed entities are required to submit the first EU Taxonomy reports by January 2022, and non-listed entities follow in 2024. However, banks and investors are already increasingly requiring their clients to disclose the same information for loans and investments.
The EU Taxonomy comes with several challenges for organizations:
- The EU Taxonomy and related regulations consist of thousands of pages and are being updated every few months.
- The data and information you need is often not readily available and needs to be collected in various systems and departments.
- Sustainability-related data, governance, and processes need to be robust – eventually requiring reasonable assurance by an auditor – with implications for 2nd and 3rd lines of defense (e.g., control governance framework).
We can support you with a pragmatic and hands-on approach to address your current needs while preparing for future requirements. Starting with drafting an action plan for regulatory compliance, we then perform mapping of EU Taxonomy eligible economic activities with support where needed on interpretation from EU Taxonomy expertise from Deloitte. And support you with the draft disclosure including the qualitative information, alignment with all stakeholders, incl. the auditor, and finalize disclosure and communicate within the annual report.
Greenomy and Deloitte build on their synergies to deliver a joint value proposition. The Greenomy EU Taxonomy reporting solution provides a well-structured methodology and automated digital workflow allowing organizations to perform their activity screening, calculating their EU Taxonomy eligibility and alignment of Turnover, CAPEX and OPEX. The cloud-based platform facilitates automated interaction and coordination between all stakeholders to ensure the EU Taxonomy-aligned data you need is created, certified and disseminated quickly and efficiently. Our accounting, sustainability and data experts are available to support you in interpreting and applying the EU Taxonomy definitions, as well as calculating eligibility and alignment scores.
- Kickstart hands-on approach enabling you to focus on real complexities and judgement areas.
- Built-in audit trail to enable auditors in providing assurance.
- Building a consistent green equity narrative substantiated with data.
- Focusing on senior stakeholder alignment and onboarding.
- Bringing thorough industry knowledge as crucial for EU Taxonomy interpretations.
- Early identifying 2022 and beyond alignment opportunities.
Why Deloitte & Greenomy
Deloitte and Greenomy have entered into an alliance to guide our clients along the path of the transition to the EU Taxonomy. The combination of the Deloitte expertise, resources and technologies with the Greenomy solution creates unique benefits and support for organizations in this new area. The solution is being utilized by our clients across the EU.