Why the EU Taxonomy could be a game-changer for green investments

In this special ESG episode of The Better Finance podcast, join Brian Tomlinson, Evan Tylenda and Nadia Humphreys as they discuss how EU Taxonomy is helping the fight against greenwashing.

Brian Tomlinson, EY Managing Director, ESG, Financial Accounting Advisory Services welcomes Evan Tylenda, Head of EMEA GS Sustain at Goldman Sachs and Nadia Humphreys, Head of Sustainable Finance Data Solutions at Bloomberg for an in-depth discussion on the EU Sustainable Taxonomy. The trio delves into how the taxonomy aims to standardize what constitutes “green” economic activities, its role in combating greenwashing and how it influences a company's transition to sustainable practices.

They share insights from the first two years of reporting under the taxonomy, highlighting its increasing adoption beyond the mandated European companies and its potential to become a market standard for defining “green” funds. With the incoming expansion of the taxonomy to include four other environmental objectives, they discuss the implications for different sectors and the anticipated shift in the sustainable finance landscape.

Finally, they offer advice on leveraging the taxonomy to create a sustainability baseline, embracing voluntary reporting and maintaining transparency, which benefits companies and investors committed to understanding their green footprint and navigating the sustainable finance landscape.

Key takeaways:

  • The EU Sustainable Taxonomy provides a set of standards to identify and promote sustainable economic activities, aiming to combat greenwashing and drive investments toward sustainable practices.
  • To date, the taxonomy has primarily focused on two areas: climate change mitigation and adaptation, but it has now been expanded to cover four more environmental objectives, including pollution and circular economy.
  • Taxonomy is quickly becoming a market standard for defining “green” in a stock market context. This is seen by the increasing adoption of taxonomy reporting from companies outside the EU, demonstrating the tool's global relevance.

For your convenience, full text transcript of this podcast is also available.


Season 6, Episode 11


0h 39m 54s