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Methodology Abstract

EU Taxonomy Solution

Make informed investment decisions and meet
EU Taxonomy regulatory reporting requirements

The European Union (EU) taxonomy is a regulatory classification framework designed to identify environmentally sustainable economic activities using science-based Technical Screening Criteria (TSC) with the aim of facilitating sustainable investments and addressing concerns about greenwashing. 

Morningstar Sustainalytics’ EU Taxonomy Solution supports users by leveraging the EU taxonomy framework to gain detailed insights into corporate disclosures of environmentally sustainable activities. It also provides granular information on individual company holdings alignment to the EU taxonomy’s six environmental objectives. 

Features of our framework: 

  • Coverage of the entire list of activities across all six environmental objectives of the EU taxonomy. 
  • Reported data from companies based on their EU taxonomy eligibility and/or alignment disclosure at activity and company-level, across three financial metrics: Revenue, 2 capital expenditure (capex) and operational expenditure (opex). 
  • Supplementary fields that enable additional data assessments and analysis. 
  • Estimated data provided for the Climate Change Mitigation (CCM) objective by leveraging Sustainable Activities Involvement (SAI) research to estimate alignment with Green Safeguards (GS) for twenty-six activities for the CCM objective.  
  • Validation of the EU Taxonomy data in accordance with EU taxonomy rules. 

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