Compte Rendu du Premier Reporting Taxonomie

Does the European Taxonomy deliver on its promises?

Following the publication in 2022 of the first Taxonomy reporting on the 2021 financial year, the AMF has published a report to provide recommendations and highlight good practices among some companies (link in the comments).

This initial light reporting focused on the eligibility of companies' activities under the Taxonomy before they are required to report on their alignment next year.

More than 95% of the companies surveyed published their eligibility indicator in their extra-financial performance report, and the AMF highlights the effort undertaken to provide details and contextual information.

However, the AMF notes variations in the quality and granularity of the data used and reminds that, even if the publication of additional indicators is authorized, it is subject to the same restrictions as alternative financial performance indicators.

It also makes recommendations to improve the quality of future reporting:

• The ESMA and the European Commission must keep providing answers to questions of interpretation of application of the texts.
• Companies requesting clarifications must receive answers to their questions within a timeframe compatible with their inclusion in their next reporting.
• Companies must intensify their efforts to produce a first clear, transparent and comprehensive alignment reporting.
• They are also encouraged to link the information provided in these reports to their broader strategy on climate change and sustainable development.

Supervisors have a major role to play alongside the EU in ensuring that the Taxonomy is implemented in a consistent, pragmatic and effective fashion.

The upcoming alignment reporting is especially significant as it will provide a valuable foundation for the obligations that will be introduced by the SFDR and the CSRD.