Under the leadership of Product Manager Joana Belo Pereira, the product has gained a number of innovative features that will make a big impact across multiple industries. To ensure product quality, we have registered and tested several pilot customers to gather insights ahead of the fall launch.
In this interview, we spoke with Joana to learn more about the product and find out more about how it connects with Sustainability Supplier Network, our other product tailored for due diligence under the Transparency Act.
- Joana, why is Factlines launching a taxonomy product now?
Time is of the essence! For Norwegian companies, which fall under the scope of the EU Taxonomy Regulation and have been granted a phase-in period, it should be of great interest to get started with reporting as soon as possible. The Taxonomy Regulation aims to transform the EEA region into the first carbon neutral zone in the world by 2050. Such a comprehensive and far-reaching zero-emission project cannot be achieved overnight. By 2030, companies are expected to have reduced their carbon footprint by almost half (!), based on 1990 levels. This assumes an annual reduction of about 7%. And this only touches on the environmental side of the taxonomy. There are major implications for business ethics as well.
If you have any questions or want to learn more about how Factlines can help you with the EU Taxonomy, please click the button at the bottom of this interview.
- Who is the product intended for?
The current taxonomy covers around 90 economic activities, spread across 13 very different industries. Everything from forestry to hydropower and software solutions. On June 12, an update to the original regulation was approved and will enter into force in January 2024. With it, the number of economic activities that fall under the scope of the EU taxonomy will increase to almost 150, where completely new sectors, such as aviation, will be included.
Whichever way you look at it, the taxonomy will affect thousands of companies in the EEA. Those companies that are able to take advantage of the restrictions in the legislation will find it easier to access funding. For listed companies or investment funds, the taxonomy adjustment will be clearly reflected in the financial results. Moreover, the scope of the taxonomy will expand over the next couple of years, to the point where it also covers small and medium-sized enterprises, which represent 97.5% of EEA-based companies.
- What will set us apart from our competitors?
Factlines has been working with the social aspects of the taxonomy for the past seven years, helping companies to audit and qualify suppliers and ensure that there is follow-up in place to address any human or labor rights violations. A SaaS product that includes the EU taxonomy is a natural extension to Factlines' existing Transparency Act product. Factlines has both the technical capability and human expertise to serve clients who need a hassle-free ESG platform and clients who, for whatever reason, need additional consultation to achieve their business goals.
If you have any questions or want to learn more about how Factlines can help you with the EU Taxonomy, please click the button at the bottom of this interview.
- How will the new taxonomy product be incorporated into the Sustainability Supplier Network?
The supply chain already includes several areas that also need to be covered as part of the Minimum Safeguards and PAI (Principal Adverse Impact) in the taxonomy regulation. Assessing whether an organization has the necessary processes and mechanisms in place to prevent, manage and remedy instances of bribery and corruption is an example of this. New areas, such as tax and fair competition, will be further integrated into the Factlines platform. Perhaps of particular interest to a Norwegian audience, topics such as gender diversity on the board, the gender pay gap, and exposure to non-renewable energy sources will also be included.
Want to know more about the taxonomy product we're launching towards the end of the year? Book a meeting with us to hear more.
If you have any questions or want to learn more about how Factlines can help you with the EU Taxonomy, please click the button at the bottom of this interview.
About the author:
Joana joined Factlines in 2022 with the goal of building a SaaS product to make life easier for organizations reporting according to the EU taxonomy. EU taxonomy. She started her career as an interpreter for various EU institutions, and is no stranger to heated discussions on proposed legislation. After a brief stint in digital marketing, she went on to focus on developing products that help accelerate the big energy shift.
