The EU Taxonomy Regulation: mandatory since 01/01/2024

Important information and preparatory measures

1. Understanding the taxonomy: The EU taxonomy defines which economic activities are considered environmentally sustainable. Companies should check the extent to which their business activities meet these criteria.
    
2. Data collection: Companies must collect relevant data from their areas of activity and the materiality analysis. This includes information on how their activities contribute to the EU's environmental objectives, including aspects such as emissions reduction, sustainable use of water and protection of biodiversity.
    
3. Mandatory start date for SMEs: From January 1, 2024, small and medium-sized enterprises will also be required to disclose relevant data and report their compliance according to the taxonomy criteria. 

The six environmental objectives of the Taxonomy Regulation

• Climate protection
• Adaptation to climate change
• Sustainable use and protection of water and marine resources
• Transition to a circular economy
• Prevention and reduction of pollution
• Protection and restoration of biodiversity and ecosystems

It is important to note that companies are not obliged to contribute to all six environmental objectives of the EU Taxonomy Regulation. Instead, they must demonstrate that their activities positively support at least two of these objectives. This flexibility allows companies to focus on the areas that best suit their specific business activities and strategic objectives. This allows them to use resources more effectively while making a significant contribution to sustainability without being overly burdened.

Sanctions

In the event of non-compliance with the regulation, companies can expect significant sanctions. These can include fines, public announcements of violations and, in the worst case, even license revocations. It is therefore crucial that companies take the requirements seriously and act accordingly.

Conclusion

Compliance with the EU Taxonomy Regulation represents a significant challenge, but also offers an opportunity to anchor sustainability in core business strategies. Companies should take action not only out of regulatory necessity, but also as part of their social responsibility and to improve their market position. Through early preparation and continuous monitoring of compliance, companies can not only avoid sanctions, but also increase their credibility and attractiveness for investors.

Do you have any questions? Contact our expert Christian Jung for a personal consultation. 
 

Get in touch