09 Jul 2020 EDAFOTEC and the Green Taxonomy
Edafotec incorporates Alejandro López-Cortijo as an advisor to the Consulting Board, to determine the alignment of EDAFOTEC´s projects with the EU Green Taxonomy thus turning her clients’ investments to green financing”.
What is it the UE Green Taxonomy
A list of economic activities with performance criteria for their contribution to six environmental objectives, while ensuring they do not harm significantly any other of the environmental objectives. It is not a standard or alabel; It does not replace ESG risk management, it complements it; It does not assesscompanies but theiractivities.
The six environmental objectives:
- Climate change mitigation
- Climate change adaptation
- Sustainable use and protection of water and marine resources
- Transition to circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
Most investment funds have established green investment quota. However, it is not easy to find projects of this nature. In other words, the supply of capital for these types of projects far exceeds the demand. Therefore, the investment conditions are much more favourable than those for conventional investments. However, not all projects that claim to be “green” really contribute to environmental goals. That is why the EU Taxonomy has been created, to establish a metric on the real sustainability of an investment.
EDAFOTEC projects specifically meet four of those objectives. With the incorporation to our Advisory Council of Alejandro, from now on, we will also certify it.