Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Climate Change Adaptation
• Circular Economy
• Sustainable Use of Natural Resources
• Biodiversity
• Social
• Governance

Environmental Achievements

• Various companies set targets for EU Taxonomy-aligned capex and revenues.
• Many companies track and report Scope 3 GHG emissions from their supply chains.
• Companies are increasingly using EU regulatory tools not only in response to existing obligations, but also on a voluntary basis to leverage value from ESG-related opportunities.

Social Achievements

• Companies are engaging their supply chains on sustainability practices, including ethical principles, circular economy, and digital innovation.
• Companies are implementing initiatives to improve workforce safety and reduce turnover (though specific quantified achievements are not provided).

Governance Achievements

• Companies are incorporating EU sustainable finance regulations into their strategy and business models.
• Companies are using the EU Taxonomy to fulfill or anticipate disclosure requirements.
• Companies are engaging external auditors to review EU Taxonomy disclosures (mostly limited assurance).

Climate Goals & Targets

Environmental Challenges

• Lack of well-defined standards for decarbonisation roadmaps.
• Limited scope of the EU Taxonomy in covering specific sectors.
• Challenges in interpreting EU Taxonomy criteria and DNSH criteria.
• Limited data availability and low-quality data, especially for Scope 3 emissions.
• IT and accountability systems not designed for EU Taxonomy compliance.
• Lack of implementation of the EU GBS.
• Limited guidance on sustainability-linked instruments.
• Data collection and verification challenges for green loans.
• Interpretation of the EU Taxonomy Regulation.
• Complexity in categorising activities (e.g., real estate).
• Lack of commonly recognised roadmaps for transition finance.
• Complexity of Taxonomy-alignment assessment for mortgages.
• Data availability and quality issues for PAI reporting.
• Diverging interpretations of PAI indicators and sustainable investments under SFDR.
• Inconsistencies between various policies in the EU framework.

Mitigation Strategies

• Companies are using the EU Taxonomy and other market-based criteria to complement the framework.
• Companies are developing loan incentives based on EU Taxonomy alignment.
• Companies are using external due diligence to reduce greenwashing risk.
• Companies are implementing organisational changes and dedicated processes for EU Taxonomy reporting.
• Companies are engaging external auditors for limited assurance on EU Taxonomy disclosures.
• Credit institutions are using the EU Taxonomy for green loan origination and monitoring.
• Credit institutions are developing impact reporting based on Taxonomy criteria.
• Credit institutions are using market-based sustainability criteria to complement the EU Taxonomy.
• Investors are using the Taxonomy to complement net zero target-setting strategies.
• Investors are using the Taxonomy for due diligence in project financing and unlisted investments.
• Investors are engaging with data providers to improve data reliability.

Supply Chain Management

Responsible Procurement

• Supplier codes of conduct
• Supplier scoring systems
• ESG assessments
• Incentive schemes tied to sustainability KPIs
• Collaboration in setting industry standards
• Stakeholder dialogue

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: EU Taxonomy, SFDR, CSRD, NFRD, ESRS, ICMA Green and Sustainability-Linked Bond Principles, LMA Green and Sustainability-Linked Loan Principles, EU Green Bond Standards (GBS), GHG Protocol, ISO certifications, GRI, NZIF, SBTi, TPI, EIB Environmental and Social Standards, OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, ILO Core Conventions

Certifications: ISO 14001, ISO 45001, LEED, BREEAM, HQETM, EDGE, PassivHaus, DGNB

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social
• Governance

Environmental Achievements

• 1,747 EU companies reported at least one Taxonomy metric (FY 2022), including 1 in 2 companies reporting capex eligibility aligned to some extent.
• 69% average Taxonomy-aligned capex for utility companies.
• 6.5% of bonds issued by EU companies are green bonds (2023).

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenges in collecting evidence against DNSH criteria.
• Data origination and updating of internal information systems.
• Verification processes remain scarce.
• Data availability and interpretation of EU sustainable finance regulation.
• Lack of interoperability between EU regulation and other jurisdictions.
• Inconsistencies with international standards.
• Criteria interpretation and DNSH assessment.
• High levels of variation in PAI reporting.
• Lack of awareness among SMEs for sustainable finance products.
• Lack of a harmonised and common green or sustainable loan definition.
• Lack of sustainability-related data reported by non-listed SMEs.

Mitigation Strategies

• Advising the European Commission on improving DNSH criteria usability.
• Establishing dedicated processes and teams for Taxonomy alignment.
• Adopting verification processes for Taxonomy alignment data.
• Engaging with companies and data providers.
• Clarification from the European Commission on the use of estimates for non-reporting companies.
• Developing dedicated assessment tools to identify, track and record clients’ transition plans.
• Incentives and financing options based on clients’ EU Taxonomy eligibility.
• Developing a simplified approach inspired by the EU Taxonomy for SMEs.
• Contributing to the ESRS Voluntary SME (VSME) standard.
• Supporting access to green and transition finance for SMEs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EU Taxonomy, SFDR, CSRD, EU GBS, ESRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed