Sustainable Finance: Commission provides additional guidance to companies on what and how to report about environmental performance under EU Taxonomy

The Commission adopted two further guidance documents, addressing frequently asked questions on the interpretation and implementation of the EU Taxonomy.

Some 4000 large companies will be reporting as of 1st January 2023 according to the EU Taxonomy framework, which establishes a common language for ‘sustainable economic activities’ for financial market participants and investors. The Commission’s focus is on helping market participants with the implementation of the EU Taxonomy. The two documents will help the companies concerned prepare their first mandatory reporting exercise, which will be used by financial market participants in their own disclosures concerning the sustainability aspects of financial products.

Both documents are currently adopted as draft Commission notices and will be applicable and effective against third parties following the official adoption, once all languages are available.