EU Taxonomy Case Study: Implementation process, results and recommendations

In this paper, prepared together with Elia Group, we share insights of the EU Taxonomy implementation process, Elia's methodology and results, some important lessons learned and recommendations for corporates to face this ambitious challenge.

There is no question: we are in the midst of a sustainability revolution. Investors, regulators and civil society alike expect change.

With regard to European policy, the EU Taxonomy is one of the initiatives that serve as the cornerstone of this revolution. In a nutshell, the EU Taxonomy is a classification system that defines which activities are environmentally sustainable (“green”) and it provides a methodology to calculate the “greenness” of a company’s turnover, CAPEX and OPEX. Companies under the scope of the EU Taxonomy will have to do a limited disclosure under this regulation starting next year (for FY2021), and report full “green” KPIs as of 2023 (for FY2022).

The EU Taxonomy is new and there are still many questions around its application and interpretation. Together with Elia Group, we prepared this paper to share our findings and views on the EU Taxonomy with the energy sector, the sustainable finance community, and broader society.