ESG Flo’s Post

2025 is closer than you think - are you ready for EU Taxonomy compliance? Our 'EU Taxonomy 101' guide is here to simplify the process and help you stay ahead. Start preparing today! 👉 Read the guide here: https://lnkd.in/d-GUWwfP #EUTaxonomy #sustainablefuture #ESGFlo #sustainability

#EUTaxonomy implementation is not going fast enough as Lily Dai and colleagues show in this important new blog. There is an important lesson here to maximise impact for future sustainable finance regulations, whether in #Brussels or elsewhere. The devil will always be in the detail but: 1) keep it simple to keep it fast. 2) it doesn't need to be perfect on day one, think carefully about developing/phasing in additional requirements (e.g. MSS/DNSH) over time. 3) the more complex the requirements are, the more important it is to provide clear, user-oriented implementation guidelines.

Lily Dai's piece here is a great catch-up on the benefits and challenges of the EU (and other) Sustainable Finance Taxonomies. In its description of the challenges, the article speaks very clearly as to why we have set up the Building Passport Alignment Project for real estate (www.bpalign.com): * Finance houses just don't have the data, * it doesn't move easily across the value chain, and * when they do get it, it isn't comparable. #applestoapples. If you're a finance firm struggling with real estate reporting under (any) SF taxonomy, drop me a line - we have a plan to help. We'd love you to be part of our journey.

Thank you very much, Lily Dai, for sharing this, much appreciated. I would like to add some practical considerations to this: 1️⃣ I think there is no doubt about the positive impact the EU Taxonomy has had on a global scale (and I would refer readers to the good comments you received on your post). 2️⃣ I also don't find it surprising at all that there is such a divergence on the quality of reporting by different companies. My esteemed former colleague Fabien Herelle from ASCEND analysed the divergence of reporting under the French Devoir de Vigilance 4 years after its implementation, and found similar discrepancies as you note here for the EU Taxonomy. 3️⃣ I think it is only to be expected that you always have different corporate philosophies when it comes to new regulation - early adopter or laggard? 4️⃣ This is especially true when it comes to sustainability where there still is too much divergence in the understanding of the ultimate objective, i.e. the definition of what 'sustainable' actually means and how it is achieved, which leaves room for some companies contenting themselves with 'just ticking the regulatory compliance box' whereas others understand the powerful dynamics that underpin this paradigm change, and the need to be at the forefront of it. 5️⃣ I appreciate that this is what the taxonomy is aiming to provide, but I don't see how its detailed standards and criteria can lend themselves to an easily understandable, actionable, intuitive definition that can help bring alignment of all relevant actors? 👉 We at s-cubed: Strategic Sustainability Solutions Ltd believe that the definition of sustainability as 'the internalisation of negative externalities' - despite all the measuring and forecasting challenges - can be incorporated into already well-understood, tried and tested concepts such as Off-Balance-Sheet Risks and Potential Future Exposure, which allows companies to see, understand and then address the risks and necessary changes to their business models to manage these risks. 💡It will then also be understood that regulations such as the EU Taxonoy, CSRD and CS3D are just stepping stones towards this paradigm change, and many activities can then be streamlined, aligned with and calibrated to that definition. Does this resonate with you? Or do you have different views or experiences?

great post and thoughts here by Lily Dai I'd also like to hear a response from the others she mentioned who are all great thinkers and thought leaders in their own right Sean Kidney Faith Ward Ingrid Holmes Theodor Cojoianu Nathan Fabian there's a danger in relying on phrases and acronyms, resulting in a compliance mentality - what's needed instead are changes in strategy, culture and behavior, the financial system is way off what it needs to be to solve environmental challenges, as a result most of all we need to measure changes in investment strategy and investment itself

Building upon our Part 1 blog post covering the EU Taxonomy, check out our Part 2 series providing insights into EU Taxonomy eligibility and alignment. In this article, we discuss important questions including: -What exactly qualifies as a Taxonomy-eligible or aligned activity? -Where do companies report against the EU Taxonomy? Stay ahead of the curve and ensure your understanding of this pivotal framework by reading the full article here: https://lnkd.in/gB-i3Ps2 #EUTaxonomy #SustainableInvesting #Reporting #Eligibility #Alignment

Our latest FSI Factcheck continues the conversation on #eutaxonomy with a focus on how those in scope should approach their reporting strategy. With the #ESGregulatory environment changing nearly every day, Full Scope Insights works with clients to stay on top of the latest news and impacts to their business. #ESG #esgreporting

On 8 April we held our 7th webinar in our EU Taxonomy Webinar Series. During this online session, our experts Gijs de Graaff and Laura Schroder shared the latest EU Taxonomy developments, as well as key insights from the 2023 disclosures. Hosted by Marco Frikkee, we engaged in Q&A with the audience and discussed disclosure requirements and limited assurance procedures. Click the post to watch the on demand webinar. #EUtaxonomy #CSRD #sustainability #kpmgnetherlands

New to EU Taxonomy? Most companies are. Here’s the TLDR version: ✅ It’s part of CSRD. If your company needs to report against CSRD, you need to report on EU Taxonomy too ✅ Taxonomy is a fancy word for classification. In this case, we’re classifying economic activities- anything with a financial components (revenue, capital exp or operational exp) ✅ The objective is to standardize the concept of sustainability by creating a universally-understood language about what qualifies as "sustainable" ✅ The idea of sustainability is centered around 6 environmental objectives (see below pic from European Commission) ✅ Using a robust assessment criteria, companies will assess the alignment of their activities to these objectives ✅ There’s a minimum safeguard component meaning companies cannot do anything “sustainable” if they don’t adhere to international social standards (human rights, corruption, etc). Makes sense, right? ✅ Companies will need to report on the % of their economic activities that are EU Taxonomy-aligned. Demonstrating how much of their total economic activities are sustainable ✅ Ultimately, EU Taxonomy will help to prevent greenwashing- yes! It seems like a tall order to define “sustainability” but I think EU Taxonomy has a solid start on this. What else would you add to this list? Stay tuned for more learned lessons as I dig deeper into this work 🤓

On 8 April we held our 7th webinar in our EU Taxonomy Webinar Series. During this online session, our experts Gijs de Graaff and Laura Schroder shared the latest EU Taxonomy developments, as well as key insights from the 2023 disclosures. Hosted by Marco Frikkee, we engaged in Q&A with the audience and discussed disclosure requirements and limited assurance procedures. Click the post to watch the on demand webinar. #EUtaxonomy #CSRD #sustainability #kpmgnetherlands