How can companies benefit from having Taxonomy-aligned activities?
1 Answer
Anonymous User
Companies that fall under the scope of the Corporate Sustainability Reporting Directive (CSRD) will be disclosing to the financial markets whether or not they have Taxonomy-aligned activities. Investors will have access to this information and can make investment decisions accordingly. Companies with Taxonomy-aligned activities will benefit from institutional and retail investors interested in green investments, as they will be looking to finance Taxonomy-aligned economic activities.
While it is not mandatory for companies to ensure their economic activities meet the criteria of the Taxonomy, it provides a motivation for companies to strive to reach a level of environmental performance that financial markets recognize as green.