The biggest advantage of the EU taxonomy is how it provides a clear framework in respect to sectors approached, ESBG said in its response on the European Commission Technical Expert Group on EU Taxonomy.
ESBG says the framework identifies with clarity what counts as green, clean or brown, and how evidence can be collected regarding this classification. The taxonomy with garner interest from investors that follow international references.
On specific sectors, the taxonomy should include as many sectors as possible and more precisely everything that has an environmental incidence, so as to allow a thorough analysis of key sectors for organisations. ESBG added in its response how it remains crucial that a broader impact assessment be carried out to identify additional areas where need exists for further clarification and/or guidance. Having the necessary guidance in place well before applying the taxonomy would add legal certainty and improve the chances of reaching a high level of applicability, facilitating broad market adoption of the taxonomy.
Regarding future measures to facilitate the implementation of the taxonomy, ESBG calls for future measures regarding the taxonomy. First, for local governments to engage, facilitate and accompany the implementation of this framework. Second, an acknowledgement by the market of this framework and that environmental, social and governance (ESG) ratings should consider it.
As for future developments of the taxonomy, ESBG advocates for flexibility, accompanying measures as well as potential exchange of best practices regarding the implementation in respect of methodology, always preserving competitive advantages of companies.
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