They are defined as characteristics, or criteria, but also as aspects and risks: in these and other ways it is tried to give a definition to the three pillars of sustainability: Environmental, Social and Governance, in an acronym: "ESG."
The state of the art of European legislation aimed at defining the legislative framework for sustainable investment is certainly the most advanced and defined in the global landscape at present.
While it is true that today ESG issues—Environmental, Social, and Governance characteristics inherent in every type of business—are increasingly high on the agendas of major organizations' boards, the carbon footprint remains one of the most important concerns in the field of sustainability.
When someone, for the first time, meets the word "Taxonomy," generally comes up against a wall, imagining a complex structure that only professionals of the sector can decipher.
It is now widely believed that the investment evaluation paradigm has undergone a profound evolution, over the past two centuries.
In the new framework defined by the European Taxonomy, with regard to the rules and objectives for classifying business activities that are considered environmentally, socially, and governance sustainable, a prominent point much discussed at the moment, especially in the financial world, is covered by Article 8 of the Taxonomy.
ESG criteria chart the course for sustainable transition in both the b2b world, from SMEs and large corporations to the world of finance.