Companies need to increasingly deal with climate risks and implement adaptation measures. A climate risk assessment is the basis for systematic management of physical climate risks. To this end, the EU taxonomy sets out detailed requirements for companies. For the implementation of a legally compliant climate risk and vulnerability assessment, the German Environment Agency has published draft recommendations.
Companies wishing to achieve taxonomy compliance for certain economic activities under the EU Taxonomy Regulation must ensure that these economic activities also meet several Do No Significant Harm (DNSH) requirements. These DNSH requirements include considering climate change adaptation. The legal requirements are defined in Annex 1, Appendix A of the Delegated Regulation 2021/2139 (EUR-Lex - 32021R2139 - EN - EUR-Lex (europa.eu) (https://eur-lex.europa.eu/legal-content/DE/TXT/PDF/?uri=CELEX:32021R2139&from=DE). There it is specified that a robust climate risk and vulnerability assessment is needed. A climate risk analysis is also required to achieve taxonomy compliance in terms of significant contributions to climate adaptation.
To facilitate the implementation of these requirements, the German Environmental Agency has developed the recommendation "How to perform a robust climate risk and vulnerability assessment for EU Taxonomy reporting?". Like a guidance, these recommendations describe how companies can practically proceed in order to meet the legal requirements of the taxonomy.
This publication is now available as a final draft and will be published soon in the publication database (in English and German).