Stronger together: Exploring the EU Taxonomy as a Tool for Transition Planning
CDP and Clarity AI analyze how the EU Taxonomy KPIs relate to the real economy transition
In 2023, the full disclosure of EU Taxonomy metrics in annual reports became mandatory for companies subject to the EU’s Non-Financial Reporting Directive (NFRD). Europe was the first region to make taxonomy disclosures mandatory for over 2,000 companies. This has resulted in a substantial amount of new sustainability-related data being made available to the market. However, it is not yet clear how to interpret and utilize this data for decision-making, including within sustainable finance.
In this report, the first to compare EU Taxonomy KPIs to existing indicators linked to corporate transition, we analyze data from over 1,700 companies. The results reveal that average numbers of eligibility and alignment hide significant variations across and within sectors, both for revenues and capital expenditures.
Additionally, the levels of detail provided by companies and their compliance with the official reporting templates vary, suggesting the need for further guidance and improvements in the quality of reported Taxonomy data.
Download the whitepaper to:
Gain insights through the analysis of EU Taxonomy data
Explore the integration of the EU Taxonomy within the context of real economy decarbonization and corporate-level transitions
Understand the prospective developments and trajectory of the EU Taxonomy
