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Climate Impact ESG

Market frameworks to drive the transition to a sustainable future while delivering economic growth provide important tools to assess your positive impact and align your growth strategy with global climate and sustainability goals.

Sustainable Development Goals EU Taxonomy

31% of revenues of major global companies are eligible for alignment with the EU Taxonomy for Sustainable Activities.

The EU Taxonomy is a tool that can help companies and financial institutions navigate the transition to a low-carbon, resilient and resource-efficient economy. It sets performance thresholds for economic activities that make a substantive contribution to one of six environmental objectives: climate change mitigation, climate change adaptation, sustainable and protection of water and marine resources, transition to a circular economy, pollution prevention/control, and protection and restoration of biodiversity and ecosystems.

The performance thresholds will help companies, project promoters and issuers access green financing to improve their environmental performance, as well as help identify activities that are already environmentally friendly. The aim is to grow low-carbon sectors, while decarbonizing high-carbon ones.

EU Taxonomy revenue share by sector

We help companies and financial institutions optimize and report their alignment.

Source: S&P Global Trucost. Data as at November 2020. For illustrative purposes. Data showcase is based on the S&P Global 1200 index, selected to represent a global supply chain, equity portfolio or loan book. The index covers 31 countries and approximately 70 percent of global stock market capitalization. Trucost's EU Taxonomy Revenue Share dataset assesses the eligibility of business activities for alignment with the EU Taxonomy. Technical screening criteria are not yet considered in this analysis.

Accelerating the transition to a sustainable future

Whether you are a financial institution, government or company, there are a number of steps that you can take to help accelerate the transition to a sustainable future.

01

Set Your
Baseline

Understand your performance on material sustainability factors across your entire value chain including business operations and product lifecycles. Financial institutions should focus on their investment or loan portfolios.

02

Use Scenario
Analysis

Use forward-looking scenarios that consider the impact of sustainability risks and opportunities on your business planning and investment strategies. Assessing climate transition and physical risks is a good place to start.

03

Identify
Opportunities

Assess how well your business, investment or loan portfolios are aligned with global societal goals such as the SDGs that are focussed on creating a positive impact.

04

Set
Targets

Consider setting robust and science-based targets that demonstrate your commitment to managing sustainability risks and opportunities.

05

Report and
Engage

Report your ESG performance to relevant stakeholders ideally alongside the financial results in your annual reports. Use your baseline results to engage with important stakeholders such as suppliers, customers and employees.

Make sustainable decisions with conviction

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