What does taxonomy alignment mean?

Taxonomy Alighnment is a process through which companies are required to make their business environmentally sustainable. To do so, they implement internal and external technological improvements (e.g.:supply chain) designed to meet the “technical screening” requirements during introduction of the reference standard.

To achieve environmental sustainability, a business needs to contribute positively to one of the six environmental goals, not harm any of the other goals (DNSH) and be run in compliance with the main international guidelines on business and human rights.