What is the EU taxonomy and why is it important for Swedish companies?

The word "sustainable" has become one of the most widely used words in business in recent decades. However, there has been no yardstick for what should actually be called truly sustainable - until now.

On 1 January 2022, the EU taxonomy officially entered into force and aims to define what is sustainable and what requirements are needed for properties to achieve sustainable status. In short, it is a classification system that makes it easier for decision-makers to identify green investments according to clear rules.

But what does this mean for Swedish companies?

Companies now have a burden of proof to substantiate a claim that something is sustainable. This places high demands on both large and small companies in the industries to which they belong (you can read which industries this applies to in the factsheet on the right). Each year, companies must report on sustainability in their operations, including the percentage of their turnover that goes to sustainable causes, according to the regulatory guidelines.

In addition, the guidelines for the classification of buildings according to the taxonomy in Sweden have been established. For a building to be interpreted as sustainable, it must belong to the top 15 percent of the national stock expressed as a primary number. This allows investors and property owners to compare the energy performance of different buildings.

If you want to read about how the real estate industry values the taxonomy on a national level, you can read our news item about it here.