Progressive climate change requires the cooperation of all actors: public institutions, organizations, companies and individuals. A coherent strategy for sustainable development must be based on systemic solutions both at the local government, national and international levels.
To encourage efforts toward energy efficiency and reducing greenhouse gas emissions, the European Union rewards with favorable financing terms those entities that take real pro-environmental measures. To measure the effects, criteria grouped under a classification system known as the European Union Taxonomy (EU Taxonomy) are used.
What is the EU taxonomy?
The EU Taxonomy is the colloquial name for a piece of legislation: the Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on establishing a framework to facilitate sustainable investment. It is one of the tools aimed at encouraging businesses to take climate action. The classification takes into account several important areas, consistent with the EU’s environmental policy, and the criteria that a business must meet in order to be considered environmentally sustainable.
By meeting the assumptions, companies can more accurately select contractors and more easily make cross-border investments. Businesses that meet the taxonomy’s criteria can also effectively defend themselves against possible accusations of greenwashing. In addition, the EU has adopted a package of measures aimed at improving the cash flow of sustainable investments.
Who is affected by the EU taxonomy?
Within individual member states, the entities required to disclose the required information are companies subject to the Non-Financial Reporting Directive, financial market participants and bond issuers.
An advisory body on behalf of the EU, providing support in the area of taxonomy issues, is the Sustainable Finance Platform, which includes experts from the public and private sectors.
What are the goals of the EU taxonomy?
The EU taxonomy details the environmental goals that companies are motivated to achieve. The environmental goals of the EU taxonomy are:
- Mitigating climate change – such as reducing greenhouse gas emissions.
- Adapting to climate change – such as growing drought-tolerant crops.
- Sustainable use and protection of water and marine resources – e.g., fishing calendar regulations.
- Transitioning to a closed-loop economy – such as reusing waste as raw materials.
- Pollution prevention and control – such as environmental education.
- Protecting and restoring biodiversity and ecosystems – such as protecting wild pollinators.
What are the prerequisites for environmental activities that a company must meet?
As part of its climate-beneficial measures, the EU requires companies that want to be considered environmentally sustainable to fulfill four prerequisites simultaneously. Such business activities must:
- Make a real contribution to at least one of the environmental goals.
- Do not cause serious damage to other environmental objectives
- Act in accordance with the minimum guarantees of social security and management.
- Meet technical criteria.
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What must be shown in the annual report?
Of course, it is not enough to declare the fulfillment of the above prerequisites. This condition must still be documented. In its annual report, the company must disclose for this purpose:
- What percentage of turnover came from products or services related to environmentally sustainable activities?
- What percentage of capital expenditures were assets or processes related to environmentally sustainable operations?
- What percentage of operating expenses were assets or processes related to environmentally sustainable operations?
The taxonomy compliance testing process ends with the issuance of a report.
How does TERMOCENT help companies within the EU taxonomy?
One of TERMOCENT’s goals is to support companies, institutions and private customers in their efforts to make buildings more energy efficient. As part of our services related to fulfilling the premises of the EU taxonomy, we offer:
- ISO 6781 thermal imaging test (PN EN 13187).
- ISO 9972 air leakage tests (PN EN 13829).
These studies provide the basis for carrying out effective thermal upgrades, thereby increasing energy efficiency.
TERMOCENT also performs air quality studies in accordance with ISO 16000-6 and ISO 16000-3, the implementation of which is also useful for the EU Taxonomy.
Get a Thermal imaging study done!
Call at +48 530 105 398 or email: kontakt@termocent.com
