In order to meet the EU’s climate and energy targets for 2030, the EU is on a drive to redirect investments towards sustainable projects and activities. To help with this, the EU has created a new classification system (a ‘taxonomy’) for environmentally sustainable economic activities, including investments. This means large listed companies, banks and insurance companies will have to publish information on how, and to what extent, their activities align with those considered environmentally sustainable in the EU taxonomy.

The lack of a clear definition of ‘environmentally sustainable economic activities’, however, is a large obstacle to achieving the EU’s objectives.

The European Commission published a consultation on 28 July with the aim of gathering the views of relevant stakeholders and collecting information on the expected impacts, costs and benefits of the methodology and indicators proposed by the new taxonomy.

The deadline for comments is 8 September 2020.