Comply with EU Taxonomy Regulation

Assess activities against three criteria: Make substantial contribution to one environmental objective, Do No Significant Harm (DNSH) to the other objectives, and meet minimum Social Safeguards

• Access market-leading coverage with a database with more than 40,000 companies that maps company revenues to more than 1,500 economic activities
• Leverage a ready-to-use, one-stop-shop technology platform for taxonomy alignment that integrates and automatically processes and combines multiple, disparate sources of information, such as ESG data and company news
• Map DNSH and Social Safeguards requirements with reported company data, expanded by Clarity AI’s proprietary Natural-Language-Processing-powered Controversies module, which scans and analyzes more than 100,000 news articles from more than 30,000 sources per day

The EU Taxonomy is a classification tool that helps investors understand whether an economic activity is environmentally sustainable or not. An activity is deemed sustainable if it:

• Makes a substantial contribution to an environmental objective
• Does not significantly harm other objectives
• Meets minimum social safeguards

The EU Taxonomy classifies economic activities along six environmental objectives:

• 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
• The protection and restoration of biodiversity and ecosystems

As of January 2022, financial market participants (FMPs) offering financial instruments in the EU have been required to make Taxonomy disclosures for products that promote environmental characteristics or objectives. A comply-or-explain disclosure is required for all other products. The disclosure requirements involve calculating the percentage of investments that are Taxonomy-aligned.