The EU Taxonomy is a cornerstone regulation for sustainable finance, designed to guide capital towards genuinely environmentally sustainable activities. But what is the purpose of the taxonomy? Simply put — it defines what counts as sustainable in the EU, creating a common language for businesses, investors, and policymakers.

The EU Taxonomy is a classification system developed by the European Union to define which economic activities are considered environmentally sustainable. It provides a clear framework for companies and investors to assess and report sustainability in line with EU climate and environmental goals.