NACE Classification and the EU Sustainable Finance Taxonomy

NACE Classification and the EU Sustainable Finance Taxonomy

The integration of climate risk and broader sustainability constraints into risk management is a monumental task and many tools are still lacking. Yet there is strong support and bold initiatives from policy bodies and an increasing focus from the private sector side.

The EU (Sustainable Finance) Taxonomy is one such initiative of fundamental significance as it attempts to map at a granular level economic activities with respect to their climate risk mitigation or adaptation potential and create tangible metrics and thresholds to measure progress (the ultimate anti-greenwashing treatment)

At the open risk manual several clusters of entries integrate the risks (and the opportunities) of this major transition:

• the NACE Classification of economic activities
• the climate risk category and its mapping to the main risk taxonomy
• the EU Sustainable Finance Taxonomy