The EU Taxonomy Regulation is a new policy that came into effect in January of 2022. This regulation is specifically designed to provide businesses and investors with a framework that will enable them to better evaluate and identify the environmental sustainability of various economic activities. The idea behind this new framework is to create a common language that businesses and investors can use to better understand the impact of the activities they engage in on the environment. By doing so, it is anticipated that those who are impacted by these activities will have a greater understanding of potential environmental risks and have the tools necessary to make informed decisions. Ultimately, this EU Taxonomy Regulation has the potential to significantly improve our understanding of sustainable economic activities and help accelerate the transition to a greener economy.
