Financial services and solutions provider Apex Group announced the launch of its new EU Taxonomy Solution, aimed at helping clients meet disclosure requirements by ensuring alignment with the green classification system.
The EU Taxonomy is part of the EU Action Plan on Sustainable Finance, established by the EU Technical Expert Group on Sustainable Finance’s (EU TEG). The taxonomy is a classification system enabling the categorization of economic activities that play key roles in contributing to at least one of six defined environmental objectives, and no significant harm done to the other objectives. The six objectives include climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems.
With the initial implementation of the taxonomy this year, disclosures on the first two objectives, climate change mitigation and adaptation are now in effect, to be followed by reporting on contributions to water protection, the circular economy, pollution prevention, and biodiversity and ecosystems from 2023. Investors seeking alignment with SFDR reporting will be required to provide EU Taxonomy reporting as well.
The new solution from Apex enables investors to assess and improve EU Taxonomy alignment through a four-step process including identifying which of a company’s economic activities meet EU Taxonomy eligibility criteria, guiding and managing data collection to meet requirements for key taxonomy aspects such as ‘do no significant harm,’ reviewing data to identify gaps and provide advice to improve alignment, and identify, calculate and report eligibility and alignment KPIs based on relevant metrics and set targets to resolve gaps and increase alignment.
The launch forms part of Apex Group’s “Impact Month,” during which the company aims to launch a series of ESG-focused products, which also include a private markets-focused impact assessment solution, launched last week, as well as solutions addressing DEI and climate and carbon.
Joshua Brunert, Global Head of ESG Product at Apex Group said:
“We believe that the EU Taxonomy is going to be the key framework for reallocating capital towards sustainable activities in the coming years. It is a major enabler of sustainable investment, helping companies and investors to prove their ESG credentials, stand out from competitors, and drive positive change. Enabling our in-scope clients to demonstrate alignment with the EU Taxonomy is only the beginning – with over twenty green taxonomies in place, in development or under discussion worldwide it is crucial that investors act to understand and report taxonomy alignment data sooner, rather than later.”