Sustainability: How the EU plans to transform the economy
The European economy is going green – sustainability is at the top of the EU agenda and measures on sustainable finance, EU taxonomy or sustainable corporate governance will radically transform the economy in the coming years.
Sustainable financing and corporate governance
While the EU Taxonomy contains a “green list” of economic activities which are to be considered sustainable, European supply chain regulations oblige companies to guarantee compliance with human rights and environmental regulations not only in their own operations, but along their entire supply chain. The measures intend to support companies in both implementing sustainability-related aspects in their own business models and investing in sustainable technologies and measures for environmental improvement.
From “nice to have” to business case?
According to the EU, “green” and Environment Social Governance (ESG) are thus the new underlying criteria for functioning business models and investments. It remains to be seen whether the “supply chain law” and mandated sustainability at EU level will become a locational advantage, or competitive disadvantage for Europe.
For a better understanding, we have summarised the key takeaways and next steps of the measures on sustainable financing and corporate governance in a one-pager.