EU Taxonomy
As part of the EU’s plan to direct investments towards a more sustainable economy that aligns with the European Green Deal, the European Commission defined a classification system of sustainable activities under taxonomy regulation in 2020. The EU taxonomy regulation creates a common definition of environmentally sustainable economic activities to be used by investors, corporates, policymakers and other stakeholders.
Climate change mitigation and climate change adaptation environmental objectives were set out in the Climate Delegated Acts1 , and apply since 2022, while the remaining four objectives came into force in June 2023 under the Environmental Delegated Act2 , and are effective from 2024 onwards. For each of these objectives, the Delegated Acts define which activities are eligible. For an economic activity to be considered aligned with EU taxonomy, however, it needs to meet all the below: a) to substantially contribute to at least one environmental objective; b) to meet the technical screening criteria (TSC) defined for per activity; c) to do no significant harm to any of the remaining objectives; and d) to comply with the minimum social safeguards.
As a company domiciled in Switzerland, we are not subject to the EU Non-Financial Reporting Directive and hence are not currently required to report following the EU taxonomy. However, in line with our practice to provide stakeholders with high-quality and value-adding ESG data, we have decided to voluntarily publish key information related to EU taxonomy for 2023. This is the result of the preparatory work we have been doing, in anticipation of the mandatory EU taxonomy disclosure next year, as CCH falls into the expanded scope of the Corporate Sustainability Reporting Directive, introduced in January 2024. You can read more here.
