What We Do? – EU Taxonomy & Climate Risk Assessment

The Taxonomy is a framework setting out what requirements organisations must satisfy in order to be considered sustainable for investment purposes.  There are several steps involved and the starting point is deciding which pathway best suits your organisation:

• Climate Change Mitigation (reducing greenhouse gas emissions), or
• Climate Change Adaptation (adjusting to climate change risk)

Climate risk is embedded within the Taxonomy and all organisations seeking to align with it must consider how potential climate change hazards (e.g. flooding) could impact upon their activities taking account of how vulnerable their assets (e.g. buildings) are exposed to the climate change impacts.

The Taxonomy prescribes specific obligations that organisations must also satisfy in order to be considered sustainable.  These relate to:

• Sustainable use and protection of water
• Transition to the Circular Economy
• Pollution prevention & control
• Protection of ecosystems

Minimum social safeguard requirements within the Taxonomy follow UN, OECD and ILO guidance to ensure:

• Protection of Human Rights
• Employment & Industrial Relations
• Health & Safety

ERS helps navigate through the Taxonomy by finding opportunities where organisations can contribute to positive climate action and completing Climate Risk & Vulnerability Assessments, which are a specific Taxonomy requirement.

We have completed such assessments for:

• The OPW during the office refurbishment to house the new headquarters of the Department of Environment, Climate and Communications.
• Asset managers and developers seeking to align projects with the Taxonomy.