PwC: EU Taxonomy Reporting 2024

PwC: EU Taxonomy Reporting 2024

2 augustus 2024

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In July 2024, PwC published a report of a research into how the financial sector handles the EU Taxonomy.

In recent years, the European Commission has implemented various regulations aimed at channelling financial resources towards sustainable economic activities, thereby fostering the sustainable transition of the economy. The Taxonomy Regulation, which serves as a framework for classifying sustainable economic activities, has been one of the first regulations in this regard and is being gradually implemented.

Since 2022, the first year of application, PwC has been analysing the taxonomy reports by the nonfinancial sector, in 2023 the financial sector was included for the first time. This year, there have been several innovations in the reporting requirements, in particular for financial undertakings with the introduction of taxonomy alignment reporting for the first two environmental objectives.

The implementation of the regulation still poses challenges for market participants. The comprehensive reporting requirements imply the adaptation of internal ESG data collection and governance processes. Furthermore, there are persisting data availability and quality issues and continuous regulatory interpretation questions which lead to diverse methodologies being applied making comparisons between the reported data difficult.

However, following the current transition phase, sustainability reporting will be on par with financial reporting. If the Taxonomy data is used for steering purposes by financial and non-financial companies, it will support the transition to a more sustainable economy.

Please click here to read the full report.

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