The latest Global Risks Report was released this week by the World Economic Forum (WEF). The report is overwhelmingly concerned with climate-related risks and assesses the potential threats of these to be greater than the threats linked to another financial crisis.

Climate risk reporting is increasingly becoming included as a requirement in sustainability reporting with the EU taxonomy requiring climate risks assessments as a part of its technical screening criteria, and an increasing focus on the TCFD.

Increasingly, the climate is becoming a major business risk for companies, but many companies are failing to assess for it and disclose to their investors.

The Environmental Delegated Act looks set to bring a number of new activities and industries within the scope of the taxonomy.

The EU Commission is suggesting sustainability metric reporting to follow a standardized, digital format. What does this mean for sustainability reporting?

Electricity generation from wind power is included as an eligible activity in the EU taxonomy. However, it is not automatically a sustainable activity.

Companies required to report on the taxonomy will need to assess their business activities against the technical criteria and disclose this information according to the regulation.

Electricity generation from bioenergy is one of the eligible activities identified by the EU in the taxonomy technical screening criteria.

On New Years Eve, the EU Commission announced that nuclear and gas would be included in the taxonomy as transitional sources of energy and shared a draft text for a Complementary Delegated Act (CDA). This week, the Platform on Sustainable Finance released their response to the EU Commission’s proposed criteria for nuclear and gas.