Sustainable finance

Sustainability Taxonomy

A classification system defining which economic activities count as environmentally sustainable — the EU Taxonomy as the archetype.

Established · Editorial draft

Definition

A sustainability taxonomy is a classification system that defines, through technical criteria, which economic activities qualify as environmentally (or socially) sustainable for investment and disclosure purposes. The EU Taxonomy Regulation (2020/852) is the reference model: activities qualify by substantially contributing to one of six environmental objectives, doing no significant harm to the others, and meeting minimum safeguards. Dozens of jurisdictions have developed or are developing national taxonomies (China, ASEAN, UK, South Africa), with interoperability an active challenge.

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