Leaseurope Task Force on Taxonomy Reporting
Leaseurope, the European Federation of Leasing Company Associations, represents and promotes the interests of the leasing and automotive rental industries in Europe. As green transition has become a top priority for the European Union which is translated into a variety of new legislative frameworks for businesses and the financial sector, Leaseurope is working to support their members navigate the complex landscape of sustainability reporting and particularly of EU Taxonomy reporting.
The EU Taxonomy Regulation is a key piece of legislation in this area, as it establishes a classification of economic activities that can be considered environmentally sustainable when they contribute substantially to specific environmental objectives, such as reducing greenhouse gas emissions, preserving biodiversity or transitioning to a circular economy. The Taxonomy Regulation requires a wide range of financial and non-financial undertakings to report on how and to what extent their activities are associated with economic activities that qualify as environmentally sustainable under its provisions.
For leasing companies, there are some specific challenges in applying the Taxonomy Regulation, particularly in determining what constitutes a "green asset" and how to assess the taxonomy eligibility and alignment of leasing activities.
To assist its members, Leaseurope has set up a new Task Force on Taxonomy Reporting, which will be a platform for experts to discuss and work on a minimum approach specifying how leasing fits in the Taxonomy reporting. The aim of this Leaseurope Task Force will be to draw up a report with recommendations on the approach to be followed for taxonomy corporate reporting with regards to leasing services and on a classification of assets that can be considered as contributing to the environmental objectives laid down in the EU Taxonomy. The Task Force will report to the Leaseurope Legal Affairs Committee.
Overall, the goal of taxonomy reporting obligations (and in general of sustainability/non-financial corporate reporting) is to promote transparency and accountability in business practices, and to encourage companies to adopt more sustainable practices. As consumers and investors become more focused on sustainability issues, companies that are able to demonstrate their commitment to sustainability are likely to have a competitive advantage. By providing to its members guidance and support on sustainability reporting and taxonomy, Leaseurope is helping to ensure that the leasing industry, not only remains relevant and competitive in a rapidly changing business landscape, but also it enables a more sustainable world.