Trucost, part of S&P Global, announced today the launch of its EU Taxonomy Revenue Share dataset, which assesses the proportion of company revenues linked to the EU Taxonomy for Sustainable Activities. The new dataset covers over 15,000 companies representing 99% of global market capitalization and enables market participants to align with the new EU disclosure requirements, which financial institutions need to comply with by the end of 2021.
Dr Richard Mattison, CEO of Trucost, part of S&P Global, said, “Increasing evidence of the climate-linked threats to financial stability make it important for market participants to actively consider climate change mitigation in their decision-making. Trucost’s EU Taxonomy Revenue Share dataset provides a granular assessment of the proportion of company revenues linked to sustainable business activities outlined in the Taxonomy, which help identify climate-linked risks and opportunities across companies and sectors.”
In 2018, the EU established its Sustainable Finance Action Plan, with the objective of reorienting capital flows towards a more sustainable economy. The first action defined in the plan was to establish the EU Taxonomy for Sustainable Activities, a classification system that forms a central pillar of the action plan.
The new dataset includes history going back to 2005, which can help provide an assessment of how the Taxonomy-eligibility of company business activities has evolved over time. The Trucost dataset can also be applied at the portfolio level to help financial institutions understand, optimize and report on the proportion of their investment portfolios linked to the EU Taxonomy.
Research by S&P Global Market Intelligence titled, ‘ESG Data Signals: The Trucost EU Revenue Share Dataset‘ shows that investors can potentially align their portfolios with the EU Taxonomy whilst maintaining their portfolio’s return profile. In addition, investors could potentially target outperformance by identifying companies with a higher proportion of green revenues.
The EU Taxonomy Revenue Share dataset is now available as a data feed and can be found on the S&P Global Market Intelligence Marketplace.
The company recently announced the integration of Trucost Climate Analytics and Environmental Data into S&P Global Market Intelligence