Companies increasingly have to deal with climate risks and, if necessary, implement adaptation measures. To this end, there are clear requirements in the EU taxonomy, the European Sustainability Reporting Standards (ESRS) and other frameworks that are mandatory for some companies to apply.
A robust climate risk and vulnerability assessment is the basis for systematic management of physical climate risks. To this end, the EU taxonomy sets out detailed requirements for companies. The German Environment Agency provides recommendations for carrying out a such climate risk and vulnerability assessment which is legally compliant.
The European Commission’s draft delegated act to include fossil gas and nuclear power in the EU Taxonomy would prevent the Taxonomy from being an effective transparency tool for the financial markets, the German Environment Agency says. The draft labels as “sustainable” a large amount of GHG emissions from fossil gas, and nuclear power producing high-level nuclear waste.
