CSRD spotlight: Get up to speed on required EU taxonomy disclosures

#CSRD Explained: EU #Taxonomy, #SustainabilityReporting Key Takeaways:

• EU Taxonomy under CSRD requires detailed sustainability reporting.
• Identifying sustainable activities is crucial for reporting.
• Preparation involves complex criteria beyond basic KPIs.

Further Insights

1. Introduction: PwC discusses the importance of delving into the EU's Taxonomy for sustainable activities under CSRD, advising companies to understand their impact.

2. EU Goals: The EU Taxonomy is driven by goals of the European Green Deal aiming for climate neutrality by 2050, requiring a shift in corporate behaviors towards sustainability.

3. Scope and Applicability: Not strictly defined, but closely aligned with CSRD requirements, implying companies reporting under CSRD should investigate their taxonomy applicability.

4. Six Environmental Objectives: Focuses on climate change mitigation/adaptation, water, circular economy, pollution prevention, and biodiversity, outlining activities contributing to these objectives.

5. Technical Screening Criteria: Activities must contribute substantially to one objective without harming others, supported by delegated acts that detail specific criteria and KPIs for reporting.

6. Reportable KPIs: Includes green turnover, capex, and opex, focusing on the portion of activities aligned with taxonomy objectives relative to total activities.

Closing Thoughts: As companies navigate the complexity of the EU Taxonomy, how can they best align their sustainability efforts for transparent reporting and leveraging financial sector influence?

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