Ecobio appoints two new board members!

Ecobio celebrates its 33rd birthday by welcoming two new board members to support Ecobio’s success journey for the next three decades.

Only last week Ecobio celebrated the over three decades-long journey of making the world a better place by helping companies around the world with their sustainable activities. Today we are also known for our Ecobio Manager, an advanced SaaS for managing corporate sustainability.

“Ecobio aims for a strong position in the digitalization of corporate sustainability as well as sustainability consultancy in the European market.  Therefore, we have complemented our board with two high-level members, Martti Hedman and Fredrik Rönnlund, with backgrounds in SaaS and international business management”, Ecobio’s founder and president Sanna Perkiö, D.Sc., commented.  “I’m sure, that the new board will stimulate the growth and profitability of Ecobio.”

As Ecobio looks forward to another successful 30 years, we continue to rely on our purpose that was set over 30-years ago.

Our mission

We are changing the world with the help of our sustainability services for companies.

Our vision

Companies find a balance between their business goals and the well-being of nature.

Our promise

We help you balance business and nature.

Ecobio Manager and EU-Taxonomy leading the way

The future growth of Ecobio Manager and its EU-Taxonomy solution will be leading Ecobio’s journey for the next years.

“Ecobio Manager is the world’s first comprehensive taxonomy solution including a smooth classification process and up-to-date legal databases, as well as an environmental risk assessment protocol. So far, there has been no service with similar coverage in the global market.”

– Sanna Perkiö, D.Sc., founder, and the Head of Development of Ecobio.

We are certain that with the support of Martti Hedman and Fredrik Rönnlund, the journey ahead is even brighter.

“My joint path with Ecobio started last year as Advisor. I was immediately impressed by Ecobio’s expertise in the various areas of corporate responsibility. I am now super excited to join Ecobio’s Board and help the company to offer sustainability-related Consulting and SaaS services around the globe. The new EU wide taxonomy directive provides Ecobio with a great opportunity to support their existing customers, and accelerate its growth.”

– Martti Hedman

“I was deeply impressed by how Ecobio Manager helps corporations collect and communicate concrete acts that contribute to the EU taxonomy objectives. It is an overwhelming task for anyone. But Ecobio Manager manages to make it concrete, better than anything else in the market. This is a mission for the heart, as much as it is one for the mind.“

– Fredrik Rönnlund

 

Welcome to the team Martti Hedman and Fredrik Rönnlund!

Technical Screening Criteria – environmental objectives

Technical Screening Criteria – environmental objectives

Recommendations on the technical screening criteria for the last four environmental objectives

The Platform on Sustainable Finance recently released its report with recommendations to the EU Commission for the technical screening criteria for the remaining four environmental objectives defined under the EU Taxonomy Regulation (2020/852/EU). The report released on 30 March 2022 will provide the foundation for the upcoming environmental delegated act, although the EU Commission is not obliged to follow the recommendations. The Platform continues its work on the technical screening criteria for a selected set of activities and plans to release the criteria as a separate supplement in May 2022.

Defined methods and criteria

The current report details the methodological approach followed by the platform when selecting relevant and prioritised activities for which technical screening criteria should be developed – and formulating the criteria. The report consists of two parts.

Part A explains the approach of the platform and the methodology followed. It defines the ambition level for each environmental objective and clarifies what a substantial contribution means for each environmental objective. It also explains the consultation process and provides recommendations and reflections for future work.

Part B lists all the defined activities according to sector and defines the technical screening criteria and the rationale behind the selection of criteria. Note that the EU Commission is not required to follow these requirements.

The publication of the upcoming delegated act based on these recommendations is expected during Autumn 2022 and to apply from 1.1.2023. According to the Disclosures Delegated Act (2021/2178), companies need to report alignment with the new criteria 12 months after application.

The report from the Platform follows the recently released reports on the environmental transition taxonomy (29 March 2022) and the social taxonomy (28 February 2022).

Ecobio’s consulting services for sustainable finance

Ecobio can help you with interpreting the EU Taxonomy criteria and classify and report taxonomy-related information.

 

If you have any questions about our taxonomy services, please contact us:



    Corporate sustainability reporting requirements – Five steps to prepare

    Five steps to prepare for Corporate sustainability reporting requirements

    Corporate sustainability reporting requirements are taking a big leap forward and more detailed sustainability reporting will become obligatory in the EU for large and medium-sized companies.

    Corporate sustainability reporting directive (CSRD) reporting is gradually affecting different-sized companies. With CSRD reporting, a larger part of companies operating in the EU will be covered by taxonomy reporting, and in addition, companies must publish more detailed information in connection with their activity report, e.g., about the environmental and social impacts of their business.

    More and more companies are already now highlighting sustainability in their strategy and in their everyday business practices. Companies are aware that customers and investors are increasingly interested in sustainable products and responsible business, which makes them more willing to report about their sustainability goals and achievements.  

    To be able to effectively measure environmental and social impacts and to reach climate goals, companies will soon be provided with European sustainability reporting standards. Companies can already now start to prepare for the new sustainability requirements, hence making it easier to be compliant with reporting in due time.  

    Five steps to prepare for the Corporate Sustainability Reporting Directive (CSRD)  

    1. Make sure your business is ready to be transparent. The legislation sets the minimum requirements, but responsible companies aim further than just to be compliant. There is no reason to wait until sustainability requirements are obligatory. Instead, commit to the climate goals and update your company’s due diligence also in other environmental, social and governance (ESG) areas. A good starting point is to recognise the material topics in sustainability and identify those that are the most relevant and important to your company. Understand how sustainability matters affect your business and what impacts your business has on people and the environment (double materiality principle).  
    2. Top management commitment. Companies should prepare to mainstream sustainability in their strategy and targets and be ready to provide the information in their annual reports. CRSD will require to provide information on the role of the company board and management, and the resilience of the business model and strategy to risks and opportunities related to sustainability matters. Companies are expected to look forward in its impacts on sustainability matters, and appropriately consider the whole value chain, including its own operations, products and services and its business relationships and its supply chain.  
    3. Connect your risk management and financial experts in sustainability topics. Companies’ risk management plays an important role in evaluating how sustainability matters, such as climate change, can affect the business in the short or long-term. Experts in risk management will be able to understand the business value based on the results of a comprehensive materiality assessment. On the other hand, as sustainability reporting must be in line with the financial data, the financial experts have the skills and experience to create a link between financial and non-financial (sustainability) information.  
    4. Invest in reliable reporting. The EU Taxonomy requires companies to disclose certain KPIs (indicators) about their activities’ level of sustainability. The sustainability reporting standards will ensure that the reporting requirements and indicators are consistent with the EU Taxonomy. The standards will most likely facilitate the assurance of sustainability information which is also becoming a requirement for companies. High-quality preparation for reporting guarantees that company’s sustainability report passes the assurance, and the company can be trusted for what it informs about its impacts on people and the environment.  
    5. Digitalise. In a few years, companies are required to disclose their EU Taxonomy disclosures and other financial and sustainability information in a digital, machine-readable format. There will be an EU-wide digital access platform for the company data. The common reporting standards will facilitate digitalisation, but before the standards will apply, companies are encouraged to digitalise the reporting. Companies and data users save time and money when sustainability data is easily available in a digital format.

    Read more: CSRD reporting – the new obligations accelerate companies’ sustainable business activities

    We can assist you in preparing for the upcoming CSRD reporting requirements. Our sustainability experts can help you guide your organisation towards sustainable development goals. Please contact our consultancy services:  



       

      You can read more about our consulting services here.

      For EU-Taxonomy eligible companies, our newest whitepaper: EU-Taxonomy classification and reporting in 2023 – Eight steps to compliance whitepaper is a must-read.

      Sources:

      https://eur-lex.europa.eu/legal-content/FI/TXT/PDF/?uri=CELEX:52021PC0189&from=FR

      https://data.consilium.europa.eu/doc/document/ST-6292-2022-INIT/fi/pdf

      https://www.globalreporting.org/standards/standards-development/universal-standards/

      https://www.globalreporting.org/standards/standards-development/universal-standards/

       

      New corporate sustainability due diligence requirements

       

      New corporate sustainability due diligence requirements

      New corporate sustainability due diligence requirements

      The European Commission took a much-expected step towards sustainable corporate governance at the end of February when the proposal for a Directive on Corporate Sustainability Due Diligence was published. The new EU rules will require companies to strengthen their responsibility and sustainability operations throughout their global value chains and avoid adverse impacts on human rights and the environment. Companies operating in the EU will have common rules on corporate sustainability due diligence, and by this, the responsible companies can better meet investors’ and consumers’ expectations. Companies can also benefit from having a clearer view of their operations and their suppliers’ external impacts and will be able to identify problems and risks earlier.

      Companies’ due diligence requirements will be clarified

      Although many companies have already taken voluntary steps on corporate responsibility, there is a need to encourage more responsible and sustainable corporate behaviour. The aim is to answer many companies’ call for legal certainty on their due diligence requirements. Better transparency is also needed, as consumers and investors are increasingly more interested in the overall sustainability of companies and their products and services.

      What the rules mean in practice for companies operating in the EU?

      • Companies will have to integrate due diligence policy to identify and prevent or mitigate negative human rights, climate and environmental impacts in their value chain. These avoided impacts include issues such as inadequate workplace health and safety and, for example pollution of the environment and biodiversity loss.
      • Companies are required to have a plan to ensure that their business strategy, and remuneration policies, are in line with the Paris agreement to limit global warming to 1,5°
      • The proposal also involves new rules for companies’ directors that will have duties to set up and oversee the implementation of corporate sustainability due diligence processes and ensure that sustainability matters are taken into account in the corporate strategy also in the long term.

      The proposal also includes possibility to impose fines and sanctions to companies, if a company fails to fulfil its due diligence obligations. Company can also be liable for damages if its failure to comply with the due diligence obligations leads to damages to affected people.

      Large companies and high-impact sectors are in the scope

      Large companies operating in the EU (500+ employees and net turnover worldwide more than 150 million euro) are in the scope of the Directive. The rules start to apply to 2 years later for smaller companies (250 + employees and net turnover worldwide more than 40 million euro) operating in defined high-impact sectors, that include e.g., the manufacture of textiles, food manufacturing, forestry, agriculture, metal products and mineral resources. Larger market players can take a leading role in mitigating the risks in their value chains and hence support smaller companies, that are not directly in the scope of the proposal.

      Once the Directive is in force and applied in the EU, all companies in scope need to establish due diligence procedures and integrate human rights, environmental and climate objectives into their corporate strategy. Directors are required to consider sustainability consequences of their decisions in the short, medium and long-term. Company’s Board of Directors should, in principle, be able to assess the company’s operations from an environmental and human rights perspective.

      Corporate sustainability due diligence complements EU Taxonomy and sustainability reporting

      The Corporate Sustainability Due Diligence Directive complements the EU Taxonomy and CSRD (the proposal for Corporate Sustainability Reporting Directive) by requiring companies to identify their adverse risks and, for example, by helping in providing more detailed information on how companies respect the social safeguards as required by the Taxonomy Regulation. The CSRD will complete the last step of companies’ due diligence duty, that is the reporting part.

      At the same time as the due diligence proposal is negotiated in the EU, the national corporate social responsibility legislation is being prepared in Finland. According to the Finnish Government, the national and EU rules on corporate sustainability will complement each other. After all, the aim of both legislative proposals is clear, that is to have more effective protection of environment and human rights and to get more companies involved in sustainable development goals.

      Ecobio’s sustainability tools for top management

      Are you wondering how you should prepare to meet the obligations? Our sustainability experts can help you guide your organization towards sustainable development. We have the expertise to lead organizations towards their goals ranging from alternative strategies to practice management and reporting. You can find  more information about our sustainability tools for top management here.

      If you wish to speak to a consultant, please contact Henrik Österlund:

      Henrik Österlund Ecobio Oy

       

      Henrik Österlund

      email: henrik.osterlund@ecobio.fi

      phone: +358 (0)20 756 9457

       

      To read more about Ecobio Manager EU-Taxonomy services, please click here.

      Written by: Terhi Valtonen, Senior Consultant, Ecobio

      Four new hazardous chemicals added to the SVHC Candidate List

      Four new hazardous chemicals added to the SVHC Candidate List

      Four new hazardous chemicals added to the SVHC Candidate List

      ECHA has added four new entries to the Candidate List of substances of very high concern on 17 January 2022. Substances of Very High Concern (SVHC) may have serious and often irreversible effects on human health and the environment. There are currently 223 substances or groups of chemicals on the SVHC Candidate List.

      Newly added substances are used in products such as cosmetics, rubbers, lubricants, and sealants. The substances have been added to the Candidate List due to their hazardous properties to human health or the environment.

      Hazardous chemicals added to the Candidate List

      Substance EC/CAS number Uses Reason for proposing
      6,6′-di-tert-butyl-2,2′-methylenedi-p-cresol EC 204-327-1, CAS 119-47-1

       

      		 Rubbers, lubricants, adhesives, inks, fuels Toxic for reproduction

      (Article 57 c)
      tris(2-methoxyethoxy)vinylsilane EC 213-934-0,

      CAS 1067-53-4

      		 Rubbers, plastics, sealants Toxic for reproduction

      (Article 57 c)
      (±)-1,7,7-trimethyl-3-[(4-methylphenyl)methylene]bicyclo[2.2.1]heptan-2-one covering any of the individual isomers and/or combinations thereof (4-MBC) – Cosmetics Endocrine disrupting properties (Article 57 f – human health)
      S-(tricyclo(5.2.1.02,6)deca-3-en-8(or 9)-yl O-(isopropyl or isobutyl or 2-ethylhexyl) O-(isopropyl or isobutyl or 2-ethylhexyl) phosphorodithioate EC 401-850-9,

      CAS 255881-94-8

      		 Lubricants, greases PBT (Article 57 d)

       

      Obligations related to SVHC

      Companies have legal obligations if a substance included in the Candidate List is present in a concentration above 0.1% w/w. Obligations include:

      • Providing Safety Data Sheets for substances on their own and substances in mixtures containing SVHCs
      • Requirement to notify ECHA under REACH if an article contains a SVHC
      • Requirement to inform customers and consumers under REACH if an article contains a SVHC to allow safe use of the article
      • Requirement to notify ECHA under the Waste Framework Directive (SCIP Database) about articles containing SVHCs

      Companies that are importing, producing, selling, or using substances, their mixtures, or articles (components, materials) containing SVHCs should keep an eye on the substances added to the Candidate List. Substances are regularly being added to the list. It is also recommended for companies to start looking for substitutes for the added substances already. Substances on the Candidate List may also be placed on the Authorisation List in the future, which means that continuing the use would need a permission.

      Do you need help with chemical management?

      Our experienced chemical consultants will assist you in meeting your chemical requirements. Furthermore, our Ecobio Manager SaaS-service will help you manage your chemicals and ensure compliance with global regulations. Interested? Contact us today!

      Contact: info@ecobio.fi

      Text: Mikael Hirn

      Image: Unsplash

      References

      ECHA: Four hazardous chemicals added to the Candidate List.

      TUKES: Erityistä huolta aiheuttavat aineet (SVHC).

      Voluntary information as part of Taxonomy-eligibility reporting

      Last December, the EU’s Taxonomy Platform published considerations on voluntary information as part of Taxonomy-eligibility reporting, which gives supplementary guidance for disclosures.

      In addition to mandatory reporting, voluntary reporting under the Taxonomy framework can enable non-financial companies and financial institutions to explain the eligibility proportion of their entire operations, investment profile, or balance sheet since it may include both Non-Financial Reporting Directive (NFRD) and non-NFRD companies, for example.

      Voluntary disclosures should be made regarding the same scope and timeline as the financial and non-financial statements of the firm and in line with the reporting obligations. Voluntary reporting should be prepared on the basis that it does not contradict or misrepresent the mandatory information according to the disclosures delegated act, and it should not be given more prominence than the mandatory disclosures. Where an undertaking includes voluntary reporting, this should be accompanied with information on the basis used for its preparation and a clear explanation of how it differs from mandatory reporting.

      Ecobio Manager – Our proposal for the first-period reporting

      We provide a free trial account for Ecobio Manager’s Taxonomy classification and reporting tool for non-financial companies. By which, your team can disclose according to the first period’s requirements. The offering is valid until the end of March 2022. Its value is 3000 euros.

      Act now! Please contact us and request your access to Ecobio Manager and book a demo presentation: sales@ecobiomanager.com.

      Text: Sanna Perkiö

      Source: https://ec.europa.eu/info/files/sustainable-finance-taxonomy-eligibility-reporting-voluntary-information_en

      Define total turnover, Capital expenditure and Operating expenses, of the Taxonomy-eligible economic activities in non-financial companies

      Last December, The European Council adopted the Delegated Act (2021/2178/EU) related to Taxonomy methodology and disclosure obligations for financial and non-financial companies.

      In 2022, non-financial companies shall disclose only information of Taxonomy-eligible activities for the environmental objectives of climate change mitigation and climate change adaptation.

      From 1 January 2022 until 31 December 2022, non-financial undertakings shall only disclose the proportion of Taxonomy-eligible and Taxonomy non-eligible economic activities in their

      • total turnover,
      • capital expenditures, and
      • operational expenditures.

      In addition, non-financial undertakings need to provide relevant qualitative information associated with the eligibility proportions.

      Ecobio has published a whitepaper that provides more implementation guidance on the EU Taxonomy classification and reporting for non-financial companies. Please find the latest whitepaper here.

      Upcoming for non-financial companies

      In Q1/2021, the European Union will adopt

      • Taxonomy classification criteria for nuclear power and natural gas, and
      • Technical Screening Criteria for remaining environmental objectives.

      Ecobio Manager – Our proposal for the first-period reporting

      We provide a free trial account for Ecobio Manager’s Taxonomy classification and reporting tool for non-financial companies. By which, your team can disclose according to the first period’s requirements. The offering is valid until the end of March 2022. Its value is 3000 euros.

      Act now! Please contact us and request your access to Ecobio Manager and book a demo presentation: sales@ecobiomanager.com.

      With best regards,

      Ecobio’s Taxonomy team

       

      Katrine Hoset

      Senior Consultant, Account Manager, PhD.

       

       

      Sanna Perkiö

      Head of Innovations, D.Sc.

       

       

      Malena WeurlanderMalena Weuerlander

      Key Account Manager

      Ecobio Whitepaper: EU Taxonomy Classification and Reporting in 2022 – Five Steps for Compliance

      Download Ecobio's Free Whitepaper Five Steps to Comply with the Taxonomy Regulation

      Update:

      EU Taxonomy classification and reporting in 2023 – Eight steps to compliance whitepaper available now

      The new whitepaper aims to provide implementation guidance on EU Taxonomy Classification and Reporting requirements valid from 2023. 

      EU Taxonomy classification and reporting in 2023 – Eight steps to compliance whitepaper

      This whitepaper aims to provide implementation guidance on EU Taxonomy Classification and Reporting requirements valid from 2023. The document deals with the actions needed by companies in the non-financial sector. Read the latest whitepaper to learn more about:

      • What is the EU Taxonomy Regulation?
      •  Which companies are required to act now?
      •  Eight steps for compliant EU Taxonomy classification and reporting from 2023

      Click for more here.

      In 2022, the Taxonomy classification and reporting requirements are limited. Non-financial undertakings are required to disclose the share of their turnover, capital, and operational expenditure associated with environmentally sustainable economic activities. Our new whitepaper contains the five steps for compliant EU Taxonomy classification and reporting in 2022.

      The whitepaper provides implementation guidance on EU Taxonomy Classification and Reporting 2022. The document deals with the actions needed in non-financial undertakings. The five-step work pipeline in the whitepaper will help you fulfil the actual Taxonomy requirements in your entity.

      2022 whitepaper covered the topics of:

      • What the EU’s Taxonomy Regulation implicates
      • How your company is affected by Eu taxonomy
      • What the current timeline for the Taxonomy looks like
      • Which requirements apply to your company
      • Five most important steps to meet the Taxonomy Requirements

      This whitepaper is no longer available for download.

      EU Taxonomy classification and reporting in 2022

      The EU Taxonomy Regulation and related statutes direct investments toward sustainable economic activities. They formulate a robust and science-based framework for companies and investors that provides environmental criteria for determining which economic activities substantially contribute to the EU Green Deal objectives.

      The EU Taxonomy Regulation (2020/852/EU) sets technical screening criteria to determine if an economic activity can be considered sustainable for six environmental objectives. Currently, the screening criteria are available for the two objectives: climate change mitigation and climate change adaptation. The screening criteria for the remaining objectives will be published in spring 2022.

      Read more about our EU Taxonomy digital solution here and our sustainable finance consultancy services here.

      Webinar 27.1: EU Taxonomy Reporting in 2022 – What are the obligations and how to use digitalization in reporting?

      EU Taxonomy Reporting in 2022 - What are the obligations and how to use digitalization in reporting?

      Join our EU Taxonomy webinar on the 27th of January!

      Register here

      In our webinar, Ecobio’s EU taxonomy experts will briefly review the current environmental classification and reporting obligations of the EU Taxonomy for large companies and entities regarding 2022 reporting. The webinar focuses on the requirements of large listed companies and non-financial entities.

      Why is EU taxonomy reporting timely?

      The EU Taxonomy Regulation requires large organizations to assess and report annually the financial impact of environmentally classified activities. In the spring of 2022, large listed companies and other non-profit organizations will report for the first time in accordance with the regulation.

      The EU Commission has created a complex system that makes it easy for companies to get lost without expert help and a systematic way of working. Our webinar presents the steps of first-year taxonomy reporting and introduces an easy and comprehensive digital solution to meet the complex requirements. The taxonomy requirements will expand next spring, making it profitable to take advantage of the efficiency offered by digitalization. As an added benefit, we offer a free trial use of Ecobio Manager for taxonomy-obliged participants for a limited time.

      Webinar agenda

      Our taxonomy experts will answer the following questions in the webinar:

      1. What are the benefits of the EU taxonomy regulation?
      2. Which entities will be affected by the EU taxonomy in 2022, and what are the obligations?
      3. How are economic activities identified, and how do you perform an eligibility assessment?
      4. What key performance indicators should be reported and how?
      5. What else is required for financial reporting?
      6. How will the EU taxonomy develop in 2023 and the future?
      7. How can digitalization help with environmental classification and reporting?

      During the event, it is possible to ask questions of our experts in the chat.

      To whom?

      The webinar is aimed at financial and sustainability reporting officers of listed companies and other public interest entities, financial- and sustainability experts and those in charge of EU Green Bonds.

      What are the additional benefits for the webinar participants?

      We offer your company a free trial (worth 3 000 €) to our digital taxonomy solution, Ecobio Manager, until the end of March 2022. During the trial, you can conveniently use digitalization to classify and report your data according to the first year’s requirements. The offer is intended for participants with taxonomy obligations.

      We give you the opportunity to take advantage of the added benefit even before the webinar. Contact us by email at sales@ecobiomanager.com, and we will open the service for your company.

      When?

      The free webinar in English will be held on Thursday, January 27, 2022, from 11:00 to 11:40 (UTC+2)!

      In case you are interested in the topic but would prefer to listen to the webinar in Finnish you can register for the Finnish webinar (27.1.2022 at 10.00-10.40) here.

      Welcome to listen and ask about the current EU environmental classification!

      Register here

      Read more about Ecobio here and Ecobio Manager here.

      The Climate Delegated Act to the EU Taxonomy Approved and Ready to Be Applied

      European Commission

      The delegated act on the climate part of the EU regulation (2020/852) on taxonomy – the first delegated act presented by the European Commission – was approved by the majority of the Member States. The delegated act specifies the technical screening criteria for environmental objectives of climate change mitigation and climate change adaption – two of six environmental objectives included in the EU Taxonomy. The Official Journal has published the decision on Thursday, the 9th December 2021.

      This approval means that the large public-interest companies with more than 500 employees can accelerate their preparations to disclose this year’s taxonomy eligible economic activities as defined in the climate delegated act.

      Before the end of the year, the Commission will present a complementary delegated act concerning the inclusion of fossil gas and nuclear in the taxonomy. No official date has yet been set.

      Would you like to have more information about EU Taxonomy?

      Please subscribe to Ecobio’s EU Taxonomy News here and book a presentation for Ecobio Manager’s digital taxonomy tool here.

      Text: Sanna Perkiö & Katrine Hoset

      Picture: Shutterstock

      Source: European Parliament, 9.12.2021