Daylight credit and EU Taxonomy: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Administrator
(CSV import)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
''Credit transfer.''
''Sustainability - European Union - European Commission.''
An intra-day exposure of a bank when account is in an overdraft position at any time during the business day vis-à-vis credit extended for a period of less than one business day.


Daylight credit may be extended by central banks to even out mismatches in the settlement of payments.  
The EU Taxonomy is a tool to help investors, companies, issuers and project promoters navigate the transition to a low-carbon, resilient and resource-efficient economy.


In a credit transfer system with end-of-day final settlement, daylight credit is tacitly extended by a receiving institution if it accepts and acts on a payment order even though it will not receive final funds until the end of the business day.
The Taxonomy sets performance thresholds (referred to as ‘technical screening criteria’) for economic activities which:
*Make a substantive contribution to one of six environmental objectives (below).
*Do no significant harm (DNSH) to the other five, where relevant.
*Meet minimum safeguards (for example, the OECD Guidelines on Multinational Enterprises and the UN Guiding Principles on Business and Human Rights).
 
 
Environmental objectives of the EU Taxonomy:
 
*Climate change mitigation.
*Climate change adaptation.
*Sustainable use and protection of water and marine resources.
*Transition to a circular economy.
*Pollution prevention and control.
*Protection and restoration of biodiversity and ecosystems.
 
 
Under the EU Taxonomy, three different types of activity are recognised as "environmentally sustainable":
 
(1)  Activities that make a substantial direct contribution to one or more of the environmental objectives noted above.
 
(2)  ''Transitional activities'', acting as an appropriate stepping stone.
 
(3)  Appropriate ''enabling activities''.


Also known as Daylight overdraft, Daylight exposure, or Intra-day credit.


== See also ==
== See also ==
* [[Accounting for Sustainability]] (A4S)
* [[Biodiversity]]
* [[Business & Sustainable Development Commission]]
* [[Carbon footprint]]
* [[Climate change adaptation]]
* [[Climate change mitigation]]
* [[Common Ground Taxonomy]]
* [[Conference of the Parties]]
* [[Convention on Biological Diversity]]
* [[Corporate social responsibility]]
* [[Circular economy]]
* [[Credit]]
* [[Credit]]
   
* [[Credit rating agency]]
* [[Draft Delegated Act]]
* [[Enabling activities]]
* [[ESG investment]]
* [[European Commission]]
* [[European Union]]
* [[Global Sustainable Investment Alliance]]
* [[HLEG]]
* [[Metaeconomics]]
* [[Natural capital]]
* [[Organic]]
* [[Social taxonomy]]
* [[SRA]]
* [[SRI]]
* [[Stakeholder]]
* [[Substantial Contribution]] (SC)
* [[Sustainable Development Goals]]
* [[Sustainable finance]]
* [[Sustainability]]
* [[Sustainability Accounting Standards Board]]
* [[Sustainability bond]]
* [[Sustainability Linked Loan Principles]]
* [[Taxonomy alignment disclosures]]
* [[Taxonomy Regulation]]
* [[Technical Expert Group]]
* [[Technical Screening Criteria]]  (TSC)
* [[Transitional activities]]
* [[UK Sustainable Investment and Finance Association]]
* [[United Nations]]
* [[World Trade Organization]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 21:10, 28 February 2022

Sustainability - European Union - European Commission.

The EU Taxonomy is a tool to help investors, companies, issuers and project promoters navigate the transition to a low-carbon, resilient and resource-efficient economy.

The Taxonomy sets performance thresholds (referred to as ‘technical screening criteria’) for economic activities which:

  • Make a substantive contribution to one of six environmental objectives (below).
  • Do no significant harm (DNSH) to the other five, where relevant.
  • Meet minimum safeguards (for example, the OECD Guidelines on Multinational Enterprises and the UN Guiding Principles on Business and Human Rights).


Environmental objectives of the EU Taxonomy:

  • Climate change mitigation.
  • Climate change adaptation.
  • Sustainable use and protection of water and marine resources.
  • Transition to a circular economy.
  • Pollution prevention and control.
  • Protection and restoration of biodiversity and ecosystems.


Under the EU Taxonomy, three different types of activity are recognised as "environmentally sustainable":

(1) Activities that make a substantial direct contribution to one or more of the environmental objectives noted above.

(2) Transitional activities, acting as an appropriate stepping stone.

(3) Appropriate enabling activities.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Daylight_credit&oldid=16989’