No, there is no minimum threshold for reporting. The Taxonomy does not specify which reporting framework is used, and thus allows flexibility to adapt to the national context, providing that the compliance with criteria and thresholds can be assessed for the holding level as appropriate for the investment.
EU Taxonomy for Sustainable Finance
On 22 June 2020, the EU Regulation on the Establishment of a Framework to Facilitate Sustainable Investment -- referred to as the Taxonomy Regulation -- was published and effectively came into force in July 2020.
The Taxonomy Regulation enacts a “green finance” reporting obligation for all big corporates within the EU and sets out an EU-wide classification system, or “taxonomy”, to provide businesses and investors with a common language to identify environmentally sustainable economic activities, the truly “green activities” underpinned by metrics. For instance, for real estate corporates, acquisition and ownership of buildings constructed before 31 December 2020, is considered as “green” investment only if the building’s primary energy demand, measured in kWh/m2 is among the top 15% of the local stock. Large non-residential buildings must meet additional criteria.
The detail of the taxonomy is being developed currently and should be published in December 2020.
September 2020
Example: Investing in car sharing and compliance with EU Taxonomy
The investor needs to report the share of the total investment, revenue or capital expenditure that is attributable to the investment in a car fleet with tailpipe emissions below 50 g CO2/km and the share of the respective investment in a car fleet that had vehicles with tailpipe emissions above 50g CO2/km.
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What does EU Taxonomy Regulation mean for corporates, banks, insurance companies and investment firms?
Obligatory yearly reporting of “green” investment activity as specified in the Annex to the Taxonomy Report of the EU Commission’s Technical Expert Group of March 2020
Access to post-COVID-19 recovery ‘green’ grants
Expertise
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