S&P Global’s Trucost Launches Dataset to Assess Revenue Exposure to EU Taxonomy
S&P Global company Trucost announced today the launch of the EU Taxonomy Revenue Share dataset, aiming to measure the proportion of company revenues linked to the EU Taxonomy for Sustainable Activities. The company stated that the new dataset covers over 15,000 companies representing 99% of global market capitalization. The new dataset is designed to enable market participants to align with the new EU disclosure requirements, which financial institutions need to comply with by the end of 2021.
Established in 2000, and acquired by S&P Dow Jones Indices in 2016, Trucost provides data services to assess risks relating to climate change, natural resource constraints, and broader environmental, social, and governance factors.
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 climate change mitigation and adaptation. Inclusion in the EU Taxonomy requires contribution to at least one of six defined environmental objectives, and no significant harm done to the other objectives.
Dr Richard Mattison, CEO of Trucost, said:
“Increasing evidence of the climate-linked threats to financial stability make it important for market participants to actively consider climate change mitigation in their decision-making. Trucost’s EU Taxonomy Revenue Share dataset provides a granular assessment of the proportion of company revenues linked to sustainable business activities outlined in the Taxonomy, which help identify climate-linked risks and opportunities across companies and sectors.”
Trucost stated that new dataset includes history going back to 2005, which can help provide an assessment of how the Taxonomy-eligibility of company business activities has evolved over time. The Trucost dataset can also be applied at the portfolio level to help financial institutions understand, optimize and report on the proportion of their investment portfolios linked to the EU Taxonomy.
The EU Taxonomy Revenue Share dataset is now available as a data feed and can be found on the S&P Global Market Intelligence Marketplace.