Taxonomy

Who is affected by Taxonomy?

• EU and member countries

• Companies

• All answers are correct

• Financial market participants that provide financial products

The sustainable activity must among others:

• Contribute to one or more of the six environmental objectives listed in the Taxonomy

• Not cause significant harm to any of the other goals, while respecting basic human rights and labor standards (however, this is not mandatory requirement)

• Comply with some of minimum social guarantees

• All answers are correct.

The Taxonomy is intended to promote only activities that are objectively friendly to all elements of the environment.

• True

• False

An activity that causes significant harm to environmental goals can be qualified with one of following characteristics:

• an activity causes serious harm to climate change mitigation if it leads to significant greenhouse gas emissions

• for climate change adaptation, it is unacceptable to exacerbate the adverse effects of future climate conditions

• for sustainable use and protection of water and marine resources, the good status or good ecological potential of water bodies, including surface and groundwater bodies, must not be harmed

• All answers are correct.

The minimum guarantees are the procedures followed by the business enterprise to ensure compliance with the responsible business conduct standard.

• True

• False

Large companies are obliged to gather non-financial information, however they do not have to make it public.

• True

• False

"The principle of "do no significant harm" shall only be applied to those investments within the financial product that take into account the EU criteria for:

• environmentally sustainable economic activity

• human rights

• waste management

• water savings

An activity qualifies as making a significant contribution to one or more of the above environmental goals if it directly assists other activities in making a significant contribution if:

• does not lead to dependence on assets that undermine long-term environmental goals.

• has significant positive environmental effects.

• does not lead to dependence on assets that undermine long-term environmental goals and has significant positive environmental effects.

• does not lead to dependence on assets that undermine long-term environmental goals or has significant positive environmental effects.

The Taxonomy applies to all companies subject to the Non- Financial Reporting Directive (NFRD), which will be replaced by Green Bonds Standards.

• True

• False

Choose correct sentence:

• The Taxonomy can be considered the "constitution" of ESG, and is a key instrument for promoting sustainable development.

• The Taxonomy is one component of a broader ESG (Environmental, Social, Governance) strategy that addresses the principles of sustainable investment and governance.

• Financial institutions will have to include aspects in their product offerings and communications to customers that are conducive to achieving goals that coincide with sustainable development.

• All answers are correct.