· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece here in Politico or enjoy below
🗞️ Driving the news: A record 16,565 people died in Europe last year due to the climate crisis, making it the fastest-warming continent worldwide, according to the World Meteorological Foundation
• As a result, companies and financial institutions are looking to leverage the EU's sustainable investment guidebook, the EU Taxonomy, to help finance their green transitions and manage climate risks
🔭 The context: Many businesses and financial entities are not equipped to fully comprehend the climate risks they face, and require help to transition sustainably while maintaining their profitability
• A proposed traffic-light taxonomy could serve as a guide, helping allocate capital effectively
🌎 Why does it matter for the planet: The traffic-light taxonomy would promote sustainability by incentivizing companies and financial institutions towards a green transition and accelerate global efforts to mitigate climate change
⏭️ What's next: The next step is to implement and test the traffic-light taxonomy in practice
• Countries such as Singapore, Canada, Indonesia, ASEAN, and Thailand are creating similar systems, and the EU needs to ensure it does not lag behind
💬 One quote: "We call on European investors and companies: tell the EU institutions that the environmental transition is not a choice but an absolute necessity for your business” (Vedran Kordic, EU Taxonomy Coordinator)
📈 One stat: The Investors’ Group on Climate Change, which supports the traffic-light taxonomy, represents institutions with over €65 trillion in assets
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