The DNSH principle

Does this expression sound familiar?

Perhaps you know it in the context of the EU Taxonomy, the centerpiece of the EU Action Plan on Financing Sustainable Growth. The do-no-significant-harm principle (DNSH) comes from the Sustainable Finance Disclosure Regulation (SFDR) – the disclosure regulation that applies to providers of financial products.

To decide whether an economic activity qualifies as taxonomy compliant, the DNSH principle must be met, along with other criteria. This means that the economic activity to be classified does not affect any of the six environmental objectives. The entire life cycle of the activity must be taken into account.

More on EU-taxonomy

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