Apex Group launches EU Taxonomy Solution as part of ESG offering
“Enabling our in-scope clients to demonstrate alignment with the EU Taxonomy is only the beginning – with over twenty green taxonomies in place, in development or under discussion worldwide it is crucial that investors act to understand and report taxonomy alignment data sooner, rather than later.”
Apex Group has launched an EU Taxonomy Solution as part of its ESG offering to ensure clients’ alignment ahead of growing disclosure requirements.
The EU Taxonomy is a classification system to identify environmentally sustainable economic activities within companies and portfolios. EU Taxonomy reporting is required for investors seeking alignment with Sustainable Finance Disclosure Regulation (“SFDR”) Article 9 and companies in scope of the EU Non-Financial Reporting Directive.
Disclosures that contribute to climate change mitigation and adaption have been applicable under the EU Taxonomy since 2022. From 2023, disclosures will be required on contributions to water protection, the circular economy, pollution prevention, and biodiversity and ecosystems too.
The EU Taxonomy Solution is being launched as part of Apex Group’s ESG Impact Month, an initiative to drive accountability for ESG in the financial services space.
Apex Group has recently launched its Impact Positive Solution, offering comprehensive impact assessment services for the private markets – enabling investors and their portfolios to demonstrate meaningful and measurable positive impact with the highest levels of integrity.
EU Taxonomy: the key framework for sustainable investing
Joshua Brunert, Global Head of ESG Product at Apex Group, said: “We believe that the EU Taxonomy is going to be the key framework for reallocating capital towards sustainable activities in the coming years. It is a major enabler of sustainable investment, helping companies and investors to prove their ESG credentials, stand out from competitors, and drive positive change. Enabling our in-scope clients to demonstrate alignment with the EU Taxonomy is only the beginning – with over twenty green taxonomies in place, in development or under discussion worldwide it is crucial that investors act to understand and report taxonomy alignment data sooner, rather than later.”
Apex Group’s EU Taxonomy Solution provides an efficient four-step process, enabling in-scope investors to assess and improve EU Taxonomy alignment, including:
- Eligibility assessment – independent identification of which economic activities meet EU Taxonomy eligibility criteria no matter how complex a company;
- Alignment data request – guide and manage data collection to demonstrate alignment with the substantial contribution, do no significant harm (“DNSH”) and minimum social safeguards requirements;
- Alignment data review – assess company evidence against the EU Taxonomy for all eligible activities, identify gaps in company data and documentation, and provide expert advice and tools to improve alignment; and
- Alignment calculation and actions – identify, calculate and report eligibility and alignment KPIs based on relevant metrics and set targets to resolve gaps and increase alignment.
Apex Group is already offering its ESG services to more than 350 GPs in order to report on their investments in-line with ESG standards and regulations.