Moody’s ESG Solutions announced today the launch of EU Taxonomy Alignment Screening, a new data solution aimed at helping market participants, including asset managers, banks and insurance companies, to meet disclosure requirements under the EU Taxonomy regulation.
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. Financial market participants with relevant products marketed in the EU are currently required to report alignment with the first two taxonomy objectives, climate change mitigation and climate change adaptation. Over time, market participants are expected to develop more taxonomy-aligned products and services.
Moody’s new tool covers all 100 of the activities outlined in the EU Taxonomy, and provides users with comprehensive data across the regulation’s key components, including Substantial Contribution, Do No Significant Harm and Minimum Social Safeguards. As the regulation evolves to cover more environmental and social objectives, more activities will be added to the solution’s coverage.
The new tool adds to Moody’s ESG suite of investment and portfolio alignment solutions and regulatory datasets, including the recently launched SFDR PAI Dataset, SDG Alignment Screening, and Global Compact Screening tools.
Sabine Lochmann, Global Head of Moody’s ESG Measures, said:
“The responsible investment landscape is continually evolving due to new standards for disclosure practices and demand for ESG-labelled products. EU Taxonomy Alignment Screening is the latest addition to our suite of regulatory data solutions, which help market participants navigate regulatory requirements, create innovative financial products, and support efforts to build a more sustainable economy.”