26 September, 2021

European agreement on sustainable business taxonomy divides opinion

European institutions have agreed a taxonomy of sustainable economic activity, but critics warn it could impose “unjustified additional burdens” on firms.

Image: Anton Watman/Shutterstock

European institutions have taken a step closer to agreeing definitions of what constitutes green business activity. The end of last week saw the commission president and the European Parliament reach agreement on a “taxonomy” of sustainable economic activity, following a year of negotiations. The taxonomy still needs to be ratified by the Commission and the Parliament, but it looks like European regulators have settled a way of defining sustainable business activity for investors and lenders. Commission president Valdis Dombrovskis tweeted: “A major success ahead of COP25 and for our sustainable finance strategy.” The sustain

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climate change, corporate reporting, ESG, European Commission, EuropeanIssuers, Sustainable finance