Understanding the Difference Between Taxonomy Eligibility and Alignment in Business
It requires assessing whether a certain eu taxonomy eligible and aligned activity does not significantly harm any of the other five objectives. Businesses have long understood that there is a need to consider both sustainability and profitability when making decisions. The European Union ’s (EU) Taxonomy Regulation provides a framework for eu taxonomy eligible and aligned companies to understand the differences between alignment and eligibility in terms of sustainability activities . The eu taxonomy eligible and aligned Taxonomy Regulation defines six environmental objectives , which are Climate Change Mitigation, Climate Change Adaptation, Sustainable Use and Protection of Water and Marine Resources, Transition to Circular Economy, Pollution Prevention and Control and Protection of Biodiversity & Ecosystem Services. Businesses must meet these six objectives through their activities in order to qualify as taxonomy-eligible under the EU's green finance regulations . Busi