The taxonomy puts greenwashing out of fashion for good

It is actually quite simple! The European Union has introduced the taxonomy as part of the Green Deal, meaning the ambition to become the first climate-neutral continent by 2050. In practical terms, the aim is to channel financial capital towards activities that contribute the most to the green transition, by drawing up a list of criteria through which companies can be compared. We therefore obtain a common and standardised vocabulary.

Yes, that’s right. Companies, because they have to publish a report on their activities and their proportion of green business. And investors, because they need to justify the use of their capital

It applies to all European companies with more than 500 employees. But it covers the totality of their activities, including those outside the European Union. Six objectives have been set by the European Union.Up until now, we only had to report on the first two, relating to the climate (climate change mitigation and climate change adaptation). Now we have to analyse the four new ones (sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems) and identify the activities that contribute to them. 

It’s a matter of eligibility and alignment. At SUEZ, most activities to do with water, together with waste collection and recycling, are eligible. You are eligible once you contribute to one of the six objectives. Next, activities are qualified as being aligned if they are exemplary from an environmental standpoint with regard to one of the six objectives, without doing any significant harm to the five others, and while respecting basic human rights. For example, for the production of drinking water, environmental performance is calculated by looking at how much energy per cubic metre our plant uses. In due course, all European companies with more than 500 employees will have to report on the six objectives, in terms of eligibility and alignment, and be audited by a third party. 

Yes, because we have common indicators that will allow companies to be compared and set a framework for the communication on sustainable development. At the moment we’re in a transitional phase, but everything is moving in the right direction. The taxonomy offers a global approach. Up until now, companies were focussed on the climate topic, following the impulsion given by the IPCC¹ and because impact is easier to measure. The taxonomy invites companies to approach the green transition in a more systemic way.

Through our activities and our pioneering culture, it was important to be among the first to display our commitment. Our roadmap follows a similar thrust, with as much consideration for nature and social issues as for the climate. We have a very didactic approach, based on very precise indicators.

Environmental performance can nurture economic performance. By directing capital towards activities that contribute the most to the green transition, the taxonomy will help attract new investors to SUEZ because our tangible contribution is clear for all to see. We will be able to tell a brand new story around our group and its environmental credentials.

Currently 40% of our activities are not eligible, but 60% are. Among these, 24% are eligible and aligned, meaning that 36% are eligible but not aligned. In the sector of energy providers and environmental players, the figures are similar. Through our own cautious interpretation of the law, we have a lot of room for progress on aligned activities. In due course, companies’ non-financial performance will be just as important as their financial performance. This is an essential notion that everyone has to understand. 

1) The Intergovernmental Panel on Climate Change is an intergovernmental body tasked with assessing the scale, causes and consequences of ongoing climate change.

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