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illuminem summarizes for you the essential news of the day. Read the full piece on Fintech Global or enjoy below:
🗞️ Driving the news: KPMG’s new report, “Navigating EU Taxonomy: Progress and Pathways to Compliance,” reveals substantial gaps in the sustainability disclosures of 291 European companies
• The findings show that only 24% of firms secured limited assurance for their disclosures, while 60% had no assurance, casting doubts on data reliability
🔭 The context: With the EU's taxonomy expanding to cover six environmental objectives, the study underscores challenges that U.S. companies might face in preparing for 2025 EU compliance deadlines
• The report notes sector-specific discrepancies, with Utilities leading in taxonomy alignment and Consumer Goods lagging
🌍 Why it matters for the planet: Limited assurance and inconsistent disclosures weaken transparency, potentially impeding effective climate action by lowering trust in corporate sustainability claims
• This is critical as more regions aim to align sustainability standards globally
⏭️ What's next: The report provides a roadmap for U.S. firms to prepare for incoming EU requirements, emphasizing the need for stronger verification and alignment across multiple environmental goals
💬 One quote: “As U.S. companies expand globally, understanding EU sustainability reporting requirements becomes crucial,” says Maura Hodge, KPMG’s U.S. Sustainability Leader
📈 One stat: Only 33% of companies in the study reported alignment across more than one EU environmental goal
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