
The EU Taxonomy has brought a new level of clarity to the question, What is truly sustainable? But for many financial institutions, the biggest challenge isn’t just compliance—it’s communication. How do you explain such a complex, technical regulation in a way that’s understandable, engaging, and useful?
The Communication Challenge
The EU Taxonomy is a cornerstone of the European Green Deal, providing a framework for determining whether an economic activity is environmentally sustainable. Financial institutions are now required to report how their activities—and those they finance—align with the Taxonomy.
But this isn’t just about ticking boxes. For investors, regulators, and the public, it’s also a signal of intent. How transparently and clearly an organisation communicates about the Taxonomy can shape how its sustainability commitments are perceived.
Best Practices for Communicating the Taxonomy
Internal First, External Second:
Clear internal communication is crucial. Ensure that all teams—legal, sustainability, finance, and comms—understand the implications of the Taxonomy for your organisation.
Contextualise the Regulation
Instead of diving straight into criteria and thresholds, explain why the Taxonomy exists and what it aims to achieve.
Showcase Alignment Efforts
Whether your institution is fully aligned or just starting out, be open about your journey. Highlight the steps you’re taking and the rationale behind your approach.
Use Visual Aids
Infographics and simplified frameworks can make Taxonomy reporting much more accessible.
Address Gaps Transparently
No company is perfect. Stakeholders appreciate honesty about where you’re not yet aligned—and what you’re doing to close the gap.