EU taxonomy and what it means for the economy

The European Union wants to be climate-neutral by 2050, according to the "Green Deal". The linchpin for this is the EU taxonomy. It appears to be a financial issue, but if you take a closer look, it quickly becomes technical.

From the 2022 reporting year, companies will have to add non-monetary information to their financial reports. This involves ecological, social and economic (ESG, Environmental, Social, Governance) aspects of economic activity. The idea behind this: Investments should flow specifically into sustainable companies. What is considered environmentally sustainable is defined in the EU taxonomy.

What does this mean for companies in concrete terms?

First of all, they need to know their current situation in order to be able to present it. The best way to do this is with a CO₂ balance sheet. Funding is available for this via the newly launched transformation concepts .
Even companies that already have climate protection in mind will initially only be able to report a low double-digit share of turnover that corresponds to the EU taxonomy. In order to increase this, it is important to define targets and determine when the company wants to be climate-neutral or even climate-positive.
The next step is to determine how these climate targets can be achieved. There are three options to choose from here. One does not exclude the others, rather they complement each other:

• Reduction: In order to reduce energy consumption or increase energy efficiency, technical measures are usually required, such as changing plant settings or retrofitting machinery. The German government supports the investments required for this with numerous programs. However, changes in behavior can also have a major impact if they are applied in the right places.
• Substitution: The remaining energy requirement can be decarbonized with renewable energy, for example by purchasing green electricity from renewable energy plants (RE plants). For many companies, however, it is worth generating renewable energy themselves, e.g. with a PV system or geothermal energy.
• Offsetting: CO₂ emissions that cannot be avoided despite all sensible measures can be offset using certificates. This means that the same amount of emissions is avoided in climate protection projects.

This path is more like a hike than a walk. In order to achieve the goal despite possible efforts and obstacles, it is crucial to establish active climate management in the sense of a continuous improvement process. Investments in this area also contribute fully to the EU taxonomy.

Do you have any questions or would you like support? We will accompany you every step of the way and help you find the ideal path for your company - all the way to CO₂ neutrality if you wish.