The KlimTAX project aims to support companies in implementing the EU Taxonomy Regulation 2020, particularly in the area of Climate Risk Analysis (CRA). As part of the project, a guide was developed to provide companies with instructions and recommendations for conducting a thorough CRA. This is especially relevant for companies seeking EU Taxonomy compliance, intending to direct financial flows toward sustainable economic activities. Companies aiming for EU Taxonomy compliance must significantly contribute to one of the six defined environmental objectives, must not significantly harm any of these objectives, and must adhere to minimum social standards.
Project Goals
The central goal of the KlimTAX project is to clarify uncertainties in the practical implementation of Climate Risk Analysis and to provide companies with a clear structure and approach for conducting CRA. CRA is a key component of the EU Taxonomy Regulation, supporting the environmental objective 2, "Adaptation to Climate Change." Furthermore, the EU Taxonomy includes the "Do-no-significant-harm" (DNSH) principle, which requires CRA for all environmental objectives. The guidelines for CRA are specified in Delegated Acts (Regulation (EU) 2021/2139 & Regulation (EU) 2023/2486), although there are still some ambiguities and open issues regarding their implementation. This guide aims to address these as much as possible. The KlimTAX project’s guide is designed to cover the requirements of the EU Taxonomy while also providing a practical, scientifically based framework for companies.
Project Results
The main outcome of the project is a detailed guide that supports companies in conducting CRA.
Conducting Climate Risk Analysis means that companies must examine the impacts of current and future climatic conditions on their business activities, thereby gaining a better understanding of potential climate risks and identifying adaptation measures to mitigate them. Climate risk consists of a specific hazard, exposure, and the vulnerability of the business activity, with companies particularly challenged in identifying relevant hazards and vulnerabilities.
The guide describes a five-step process for conducting the analysis and includes specific guiding questions addressing both companies that conduct the analysis internally and external service providers. In addition to the practical steps of CRA, the guide also offers insights into available datasets and indicators that can be used to identify climate-related hazards.
Funding
The project was funded by the Climate and Energy Fund as part of ACRP Implementation 2022.
