The EU taxonomy is a fundamental element of the EU's sustainable finance framework and a crucial tool for enhancing market transparency. It plays a key role in channeling investments towards green economic activities essential for the transition, and aligning with the objectives of the European Green Deal. The EU Taxonomy serves as a guide for banks to identify and finance activities that are environmentally sustainable, playing a crucial role in advancing the transition to a low-carbon economy.
According to the EU Taxonomy an economic activity is environmentally sustainable when:
- The economic activity contributes significantly to one or more of the environmental objectives.
- The activity does not harm one or more of the other environmental objectives.
- The activity is carried out in compliance with minimum safeguards (e.g. the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights and the International Labor Organization Labor on Fundamental Principles and Rights at Work).
The following six environmental objectives are mentioned in the EU Taxonomy Regulation:
- Climate change mitigation
- Climate change adaptation
- Sustainable use and protection of water and marine resources
- Transition to a circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
KPMG developed a comprehensive EU Taxonomy Alignment assessment tool, based on the Regulation 2020/852 (Taxonomy Regulation) and the methodology of the UNEP Finance: Testing the application of the EU Taxonomy to core banking products report.
Through the development of the tool the legislation of Serbia and European Union was taken into consideration.
How can we support you?
Based on the sector in which you operate, we have developed dedicated services:
For Banks and financial sector:
- Implementation of the KPMG EU Taxonomy alignment tool into internal systems in order to allow for easy identification of green activities.
For non-financial sector:
- Evaluation of business activities in order to determine level of alignment with the definition of “green” operations in accordance with the EU taxonomy.
