Using Taxonomies for the Environment

October 26, 2022 / Melody Smith / Comments Off on Using Taxonomies for the Environment

Sustainability or green taxonomies developed by governments, international bodies, and non-governmental organizations can help improve consistency in identifying what, exactly, makes an investment sustainable. This interesting information came to us from Eye on ESG in their article, “Leveraging Taxonomies: How Asset Managers Are Using New Sustainability Classification Systems – Part I.”

Investors have increasingly taken actions to integrate climate change and broader sustainability concerns into their investment decisions and portfolio allocations. However, there is a widely perceived need for greater certainty on the environmental sustainability of different types of investments and economic activities. But there are no official definitions of green or sustainable taxonomies.

Sustainability taxonomies can assist investors, asset managers, and asset owners in identifying sustainable investment opportunities and constructing sustainable portfolios that align with taxonomy criteria. As a result it can also drive capital more efficiently toward priority sustainability projects. A standards-based taxonomy can provide the solid foundation for future public policies and regulations targeting specific economic activities.

A controlled vocabulary is needed to ensure that the machine-assisted or fully automated indexing is comprehensive, regardless of what you are indexing. Access Innovations is one of a very small number of companies able to help its clients generate ANSI/ISO/W3C-compliant taxonomies to make their information findable.

Melody K. Smith

Data Harmony is an award-winning semantic suite that leverages explainable AI.

Sponsored by Access Innovations, the world leader in taxonomies, metadata, and semantic enrichment to make your content findable.

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Melody Smith

Melody K. Smith has provided organizational, social media and digital communication services to a large non-profit for the past twenty years. Prior to that she championed employee engagement and communications in the healthcare field. She holds a Bachelors degree in Marketing. When not wrangling and writing TaxoDiary content for your reading pleasure, Melody writes fiction, rescues dogs and throws legendary dinner parties.