Published February 2022
This joint report by UNEP FI and the European Banking Federation explores practical approaches for banks who wish to use the EU Taxonomy. This initiative, supported by EY, was developed based on discussions with 24 banks, 12 banking associations and six observing organisations, and follows a joint project in 2020 that tested the application of the EU Taxonomy to core banking products.
The findings of this report will support banks in understanding the EU Taxonomy, its requirements and its application for disclosure requirements which covers both mandatory and voluntary aspects.
The report explores several aspects of EU Taxonomy application to banking; it focuses on disclosure requirements under the EU Taxonomy Disclosure Delegated Act, how the EU Taxonomy could be further used to gather EU Taxonomy compatible information for banks clients who do not yet have an obligation to disclose, such as SMEs and non-EU companies, and addresses compliance with minimum safeguards of the Taxonomy regulation. The report also explores how the Taxonomy could be used by banks that wish to engage with clients whose economic activities are eligible for analysis under the EU Taxonomy, but are not yet aligned with the listed Technical Screening Criteria.