EU Moves to create a lingua franca for investment in sustainable activities
What is the EU Taxonomy Regulation?
In the article, Vanora notes: “The EU taxonomy regulation is a unified classification system for sustainable economic activities, The aim is to encourage capital flows into those activities. It means that when investors are looking at funds they will be comparing like with like. ESG means so many things to different people, but the taxonomy is creating a common language. It will mean that investors can be better informed in their decision making.”
Taxonomy Regulation Detailed Screening Criteria
“There is a lot of data out there and getting that data will be a challenge. For listed companies it is more obtainable than for many in the private sphere. Firms that are listed have made disclosures already and the information is available to asset managers. In the private world, the data may not be there.”