The EU taxonomy is one of the tools that will help us become climate neutral by 2050. But what does the EU taxonomy actually mean for Sweden and Swedish companies? Here we explain what the concept means, who is affected by it and how it may affect your business.
The EU Taxonomy is a regulatory framework that became applicable on January 1, 2022 and was designed to support sustainable investments and achieve climate neutrality by 2050 as set out in the Paris Agreement. The taxonomy's guidelines define what constitutes an environmentally sustainable economic investment using a common classification system. For an activity to be classified as environmentally sustainable, it needs to contribute significantly to at least one of the six environmental objectives of the EU Taxonomy, not cause harm to any of the objectives, and meet certain minimum social safeguards.
EU taxonomy's six environmental objectives
- Mitigation of climate change
- Adaptation to climate change
- Sustainable use and protection of water and marine resources
- Transition to a circular economy
- Prevention and mitigation of pollution
- Protecting and restoring biodiversity and ecosystems
Which actors are covered by the EU taxonomy?
Financial market participants: Asset managers, banks, pension funds and others providing financial products in the EU.
Large companies: Those covered by the EU Non-Financial Reporting Directive and required to produce a sustainability report.
Which sectors are covered by the EU taxonomy?
- Forestry
- Water, sewerage, waste and remediation
- Transport
- Manufacturing
- Energy
- Information and communication
- Science and technology
- Banking, finance and insurance
- Construction and real estate
EU taxonomy in Sweden
In summary, the EU taxonomy plays a central role in the transition to a sustainable and climate-neutral economy by 2050. By defining clear criteria for what is classified as environmentally sustainable investments, the taxonomy creates a common frame of reference that helps both investors and companies make informed decisions.
For Swedish companies, this presents both opportunities and challenges. Companies that are already at the forefront of sustainability can benefit from increased attractiveness to investors and improved competitiveness. At the same time, companies in some sectors need to adapt to the new requirements to avoid being left out of the green economy.
Want to know more about how Stratsys can help you with your sustainability work? Read more here about the product CSRD sustainability management or contact us directly.
