The European Commission set up a Technical expert group on sustainable finance (TEG) to assist it in developing, in line with the Commission's legislative proposals of May 2018:
• an EU classification system – the so-called EU taxonomy – to determine whether an economic activity is environmentally sustainable;
• an EU Green Bond Standard;
• methodologies for EU climate benchmarks and disclosures for benchmarks; and
• guidance to improve corporate disclosure of climate-related information.
The TEG has been working on developing the EU taxonomy for climate change mitigation and climate change adaptation. The final report on EU taxonomy contains recommendations relating to the overarching design of the Taxonomy, as well as guidance on how companies and financial institutions can make disclosures using the taxonomy. The report is supplemented by a technical annex containing an updated list of technical screening criteria for economic activities that can substantially contribute to climate change mitigation or adaptation, including an assessment of significant harm to other environmental objectives.