The EU taxonomy is a significant step to increase transparency and provide clear definitions of sustainable investments. It will pave the way for a mainstreaming of sustainable finance ahead of the adoption of the renewed sustainable finance strategy later this year.  

The EU taxonomy includes disclosure requirements for large companies which will be required to report the share of taxonomy-aligned activities of their turnover, capital or operating expenditure. These companies are also covered by the Non-Financial Reporting Directive, is currently under review.  

As the European Commission undertakes the revision of non-financial reporting requirements, we remain convinced that further transparency as well as policy coherence between the various legislative requirements should remain a top priority to ensure comparable, consistent and decision-useful information for investors.  

CDSB will continue engaging and providing evidence to support the European institutions to reach that common goal.