How does taxonomy show up in doing business?

Taxonomy creates a classification of economic activities and investments based on their stability.  It aims at transparent and transparent information about the environmental quality of activities for which financial flows are important. This green share is accounted for by finance as a percentage of total turnover, investment, and spending. There is no doubt that the EU taxonomy explained that the new approach should be able to quickly reorient private financial flows towards projects that favor the ecological transition.European taxonomy of participation in companies from January 2022 to monitor non-financial reporting for 2021. It identified over 90 economic activities and included a redefinition of efficiency for companies.The purpose of the European taxonomy is to delineate the contours of green finance that define the nomenclature of sustainable economic activity.Back in 2018, the European Commission launched its action plan called "Environmental Finance", implementing 10 priority measures, the recognition of which is the creation of a single European system of protection against sustainable activities.The identification of financial flows does not have sufficient resources to act alone, the search for targeted flows with the achievement of environmental results.To achieve the goal of European climate laws, the rate of mobilization of at least 1,000 billion euros in annual sustainable investment between 2020 and 2030, according to the observation of the Audit Chamber.July 12, 2020 is expected due to the so-called taxonomic regulation. This allows the market for so-called "green" foods to be regulated, limiting the "green circulation" and ensuring that investments are channeled into economic activities without harming the environment. This European taxonomy, which has direct application, is uniformly and without reshuffle registered in the legislation of all Member States.What is sustainable activity for companies?An activity can be qualified as green within the meaning of taxonomy regulation if it meets the following conditions: 1. Contribute to the achievement of at least 1 of the 6 environmental goals listed below:

•  Climate change mitigation,
•  Adaptation to climate change,
•  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.

 2. Do not cause significant harm to the other 5 environmental targets. 3. Respect the minimum guarantees of social law and, in particular, the declaration of the International Labor Organization concerning basic principles and rights at work.The European Commission has adopted a series of delegated acts to define and evaluate, through technical selection criteria, which activities are eligible for this taxonomy, which no longer allows for nuance.How does taxonomy differentiate between green activities?The first set of criteria is climate-based and helps determine whether economic activity is making a significant contribution to climate change mitigation and adaptation.However, companies today can take advantage of services such as Celsia in order to be constantly aware of the impact of their business on the external environment. This will allow you to quickly and easily manage production and at the same time avoid problems with the law.The technical inspection criteria are specified in the first delegated act of June 4, 2021, which applies to the following industries:

•  Industry;
•  Energy;
•  Water production and distribution, sewerage, waste management and pollution removal;
•  Transport;
•  Construction and real estate transactions
•  Information and communication;
•  Specialized, scientific and technical activity.

Operational performance criteria are established for each activity based on the latest scientific and industrial research.Taxonomy regulation also defines a class of so-called transitional activities. These are activities for which there is not yet a technologically and economically viable low-carbon alternative, and for which greenhouse gas emissions are significantly lower than the sector or industry average. Otherwise, they should not hinder the development and deployment of low-carbon alternatives and under these conditions can be qualified as green.This is a widely commented, discussed, and even disputed case of natural gas and nuclear energy activities. The European Commission adopted on February 2, 2022 a delegated act that, under certain conditions, includes them in the taxonomy as transitional activities. This delegated act should come into force in the next few months.To qualify as transitional, gas-fired power plants must meet one of the following criteria:

 Power plants must confirm work to expand existing reactors by 2040;

 New power plants must obtain building permits by 2045;

 Member States should have a detailed plan for the commissioning of their disposal facilities for highly radioactive waste.

What is important to remember for all medium and strong businesses?The European taxonomy redefines sustainable investing and no longer allows for nuance. However, the need to provide for a transitional period for the greening of the energy balance, the economy as a whole, and finance is recognized.  The permissive and transitional function of certain activities allows them to meet other criteria in order to qualify as green.The agricultural sector, largely absent, should also be the subject of a delegated act, the adoption of which will be as difficult as gas and nuclear. Today, companies have 2 years to apply the taxonomy and demonstrate to their financial partners and shareholders whether their business model is green.There is no doubt that once eligible, agreed, and excluded activities are identified, all companies subject to the publication of a non-financial statement of performance (DPEF) will be required to publish the metrics defined by the taxonomy as of January 2022.Financial companies will need both quantitative information, such as the proportion of their risks corresponding to economic activities eligible and ineligible for the taxonomy for the first two purposes, based on FY 2021 data, and qualitative information, such as the nature and purpose of the agreed  activities.  For non-financial companies, they will currently have to publish their share of turnover, capital, and operating transactions that fit the taxonomy.That is why it is more important than ever to implement such services as Celsia in the work of your company. As you see today it is not enough to be professional, one must also be environmentally conscious.-