IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i4p1575-d1338299.html
   My bibliography  Save this article

How Practically Applicable Are the EU Taxonomy Criteria for Corporates?—An Analysis for the Electrical Industry

Author

Listed:
  • Suzana Ostojic

    (Institute of Sustainability in Civil Engineering (INaB), RWTH Aachen University, 52074 Aachen, Germany)

  • Lorenzo Simone

    (Institute of Sustainability in Civil Engineering (INaB), RWTH Aachen University, 52074 Aachen, Germany)

  • Mark Edler

    (Weidmüller Interface GmbH & Co., KG, 32758 Detmold, Germany)

  • Marzia Traverso

    (Institute of Sustainability in Civil Engineering (INaB), RWTH Aachen University, 52074 Aachen, Germany)

Abstract

This study addresses the current and future mandatory reporting on taxonomy alignment for companies within the EU, examining the practical applicability of criteria outlined in the Climate Delegated Act. Focusing on the electrical manufacturing industry through a case study, a five-step method was developed to assess the usability of the sector-specific criteria. The results highlight the need for enhanced usability across all criteria and offer key recommendations for policy development. Particularly, the substantial contribution criteria for climate change mitigation relating to the “manufacture of other low-carbon technologies” and “data-driven solutions for GHG emissions reductions” were found to be impaired by usability issues. These results emphasize the relevance of investigating the activities assessed in this study when policymakers revise the current criteria. Finally, the study highlights the necessity for future implementation of assessments to prevent usability issues and provide a holistic picture of the status quo of the current EU taxonomy criteria.

Suggested Citation

  • Suzana Ostojic & Lorenzo Simone & Mark Edler & Marzia Traverso, 2024. "How Practically Applicable Are the EU Taxonomy Criteria for Corporates?—An Analysis for the Electrical Industry," Sustainability, MDPI, vol. 16(4), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:4:p:1575-:d:1338299
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/4/1575/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/4/1575/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kirschenmann Karolin, 2022. "The EU Taxonomy’s (Potential) Effects on the Banking Sector and Bank Lending to Firms," The Economists' Voice, De Gruyter, vol. 19(2), pages 245-253, December.
    2. Franziska Schütze & Jan Stede, 2020. "EU Sustainable Finance Taxonomy – What Is Its Role on the Road towards Climate Neutrality?," Discussion Papers of DIW Berlin 1923, DIW Berlin, German Institute for Economic Research.
    3. Ottmar Edenhofer & Christian Klein & Kai Lessmann & Marco Wilkens, 2022. "Financing the transformation: a proposal for a credit scheme to finance the Paris Agreement," Climate Policy, Taylor & Francis Journals, vol. 22(6), pages 788-797, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrea Giacomelli, 2021. "EU Sustainability Taxonomy for non-financial undertakings: summary reporting criteria and extension to SMEs," Working Papers 2021:29, Department of Economics, University of Venice "Ca' Foscari".
    2. Hoepner Andreas G. F. & Schneider Fabiola I., 2022. "EU Green Taxonomy Data – A First Vendor Survey," The Economists' Voice, De Gruyter, vol. 19(2), pages 221-234, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:4:p:1575-:d:1338299. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.