The EU Taxonomy for Sustainable Activities requires that an economic activity must make a substantial contribution to at least one environmental objective (Option B), while not causing significant harm to the others. The six key objectives include:
Climate change mitigation
Climate change adaptation
Sustainable use of water and marine resources
Transition to a circular economy
Pollution prevention and control
Protection and restoration of biodiversity and ecosystems
Option A is incorrect because a company does not need to contribute to all six objectives.
Option C is incorrect because the taxonomy requires strict compliance with the “Do No Significant Harm” (DNSH) principle, meaning activities must not harm other objectives, not just outweigh harm.
[References:, EU Taxonomy Regulation (2020/852), EU Platform on Sustainable Finance Reports, European Commission: Sustainable Finance Strategy, , , , , ]
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