Technical screening criteria
A set of rules to guide evaluation of each environmental objective under the Taxonomy Regulation.
Taskforce on Nature-related Financial Disclosures The TNFD is a global, market-led initiative established to develop and deliver a risk management and disclosure framework for organisations to report and act on evolving nature-related risks and opportunities.
The TNFD issued Recommendations of the Taskforce on Nature-related Financial Disclosures.
Task Force on Climate-Related Financial Disclosure
The TCFD was created by the FSB to develop recommendations on disclosures related to climate change risks.
The TCFD has fulfilled its remit and is disbanded.
Regulation EU 2020/852 on the establishment of a framework to facilitate sustainable investment. The Taxonomy Regulation establishes the criteria for determining whether an economic activity qualifies as environmentally sustainable, for the purposes of establishing the degree to which an investment is environmentally sustainable. An activity must contribute to one of the environmental objectives listed in the Regulation and do no significant harm to any of the other six standards, while respecting basic human rights and labour standards.
There are six environmental objectives, namely: climate change mitigation; climate change adaptation; the sustainable use and protection of water and marine resources; the transition to a circular economy; pollution prevention and control; and the protection and restoration of biodiversity and ecosystems.
RELATED INFORMATION
Circular Economy
In the EU, the circular economy refers to a model of production and consumption which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. It implies reducing waste to a minimum and materials of products which are at end of life are kept within the economy wherever possible. A circular economy is a departure from the traditional linear economic model which is based on a take-make-consume-throw away pattern.
DNSH
Do No Significant Harm – technical screening criteria set out the thresholds to define compliance with DNSH.
Taxonomy Regulation Level 2
• Climate Delegated Act: Commission Delegated Regulation EU 2021/2139
• Disclosures Delegated Act: Commission Delegated Regulation EU 2021/2178 • Complementary Climate Delegated Act: Commission Delegated Regulation EU 2022/1214
• Amendments to the Climate Delegated Act (EU)2021/2139: Commission Delegated Regulation (EU) 2023/2485
• TSC for the non-climate environmental objectives: Commission Delegated Regulation (EU) 2023/2486
Taxonomy Regulation
Legal and Regulatory Guidance
• What is the EU Taxonomy and how will it work in practice? European Commission FAQ
• Climate Delegated Act: European Commission FAQ
• What is the EU Taxonomy Article 8 delegated act and how will it work in practice? European Commission FAQ
• Reporting Taxonomy Eligible Economic Activities and Assets European Commission FAQ
• Disclosures Delegated Act (Article 8 of the Taxonomy Regulation) – European Commission Staff Working Document
• Complementary Climate Delegated Act: European Commission FAQ
• EU Taxonomy Navigator – A simple and practical guide for users
• EU Taxonomy User Guide – A User Guide to Navigate the EU Taxonomy for Sustainable Activities
An international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.
As set out by the European Commission in its Recommendation on facilitating finance for the transition to a sustainable economy, “transition finance should be understood as the financing of climate and environmental performance improvements to transition towards a sustainable economy, at a a pace that is compatible with the climate and environmental objectives of the EU.”
The potential negative impacts of climate change on an organisation, including physical risks (e.g. event driven risks such as extreme weather events and longer term shifts in precipitation and temperature) and transition risk.
• Physical Risks: Physical risks are either acute (event driven) or chronic (longer term shifts in climate patterns.
• Transition Risks: The risks inherent in changing strategy, policy or investments in the move to reducing reliance on carbon and a less polluting, greener economy. The TCFD set out that transition risks may include policy, legal, technology, market and reputational risks.