With the start of the first reporting period in January 2022, there has been a lot of attention surrounding the EU taxonomy, but what does EU taxonomy alignment really mean?

The first EU taxonomy reporting period is quickly approaching. What are some of the benefits of the taxonomy for your company?

The EU taxonomy will require all large, listed companies with more than 500 employees to report on their taxonomy score.

The EU is changing its requirements so that all companies with more than 250 employees and all listed small and medium-sized enterprises will be obliged to assess and report on their taxonomy score

Companies aligning with the taxonomy will benefit when meeting investors, banks, and customers, but what other benefits are there from moving fast?

The EU taxonomy is a classification tool for business activities with a primary objective of redirecting capital flows to more sustainable business activities.

If you're promoting sustainability or have that as one of your investment criteria or considerations, you'll have to report your sustainability score in accordance with the taxonomy.

The EU is not the only one developing a sustainable finance taxonomy; there are several countries working on their own sustainability taxonomies, including China, the UK, Mexico, Canada, and Russia. This raises questions as to how these taxonomies will interact.

The taxonomy is required to report on for thousands of EU companies and financial institutions, with the number soon set to increase.