EU taxonomy alignment case studies

By the end of 2021, investors that offer funds in Europe described as “environmentally sustainable” will need to explain how, and to what extent, they have used the taxonomy in determining the sustainability of the underlying investments. They must also disclose the proportion of underlying investments that are taxonomy-aligned as a percentage of the investment, fund or portfolio.

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Testing the taxonomy: insights from the PRI taxonomy practitioners group

This report shares insights from the first comprehensive set of case studies around how to use the EU taxonomy. Starting in late 2019, over 40 investment managers and asset owners worked to implement the taxonomy on a voluntary basis in anticipation of upcoming European regulation.

“Ensuring that the taxonomy is aligned with company non-financial reporting requirements is integral to the success of the regulation.”
“Industry groups and trade associations have a role to play in translating the taxonomy into an industry reporting standard, supported by best practice processes and assurance requirements.”
“Push to ensure that the taxonomy becomes a global standard that is widely used by leveraging market participants and institutional investors.”
“While detailed in-house analysis and application of the EU taxonomy is very time-consuming, we believe there is value in understanding all the pitfalls. This should help to assess the robustness of the approaches taken by different data providers, even if applied on a limited sample of issuers or GBs.”
“There is value in nurturing an understanding of a company’s culture, regulatory environment and the industry in which it operates. This will avoid overburdening companies to report information that may not add value to the investment process.”

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From policy to practice: testing the EU taxonomy

2020-09-10T05:00:00+01:00

By Will Martindale, Director of Policy and Research, PRI