Understanding the European Taxonomy: A Pillar of Sustainable Finance

Today, issues of sustainability and ecological transition are at the heart of economic and social concerns. Two essential frameworks are emerging to guide this transformation: the European Green Taxonomy and the Sustainable Development frameworks.

📊 The European Green Taxonomy is an innovative classification system introduced by the European Union, aiming to define the economic activities that significantly contribute to the EU’s environmental objectives. It promotes investments in sustainable sectors, thus supporting biodiversity protection, combating climate change, and the responsible use of resources.

🌱 The Sustainable Development framework, popularized by the Brundtland Report in 1987, offers an integrated approach that balances economic, social, and environmental dimensions. Its goal? To meet present needs while ensuring resources for future generations.

⚖️ Although the Taxonomy and Sustainable Development have distinct approaches, they share common goals: fostering an environmentally respectful and socially inclusive economy. Together, they form complementary frameworks that can guide public policies and corporate actions toward a more viable future.

💡 Why is this important?

  • The European Taxonomy stimulates innovation and competitiveness in low-carbon sectors.
  • Sustainable Development remains a central pillar in addressing societal and environmental challenges, notably through Corporate Social Responsibility (CSR) policies.

🔍 In our pursuit of a sustainable economy, it is crucial to understand how these two frameworks can work in synergy. Companies, institutions, and investors play a key role in adopting these frameworks to accelerate the ecological transition.

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