TAXO TOOL for the EU Taxonomy reporting
The AI-powered solution enabling financial institutions and companies to streamline the EU Taxonomy reporting workflow
_What is the EU Taxonomy:
The EU Taxonomy is a classification system that helps companies and investors identify “environmentally sustainable” economic activities to make sustainable investment decisions.
A project or an investment can be deemed “eligible” by the EU Taxonomy if its economic activity has been nominated and ruled by this regulation. Once this has been confirmed, the economic activity will be assessed to determine if it aligns with one of the six environmental objectives outlined in Article 9 of the taxonomy regulation:
- 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
To ensure that an economic activity substantially contributes to one of these objectives, while not doing significant harm to any of the other five objectives, the EU sets specific performance criteria (so-called “technical screening criteria”) for each economic activity.
_Advantages of the Taxo Tool
#1 Document Reading and Data Capture
Our AI language models capture numeric and textual data from various documents, such as energy certificates for buildings, and use the extracted data to suggest appropriate answers to EU Taxonomy questions, accelerating the assessment process.
#2 Simplified Calculations
Taxo Tool simplifies complex calculations related to carbon emissions and other technical screening criteria (TSC). This is particularly valuable for financial institutions assessing SMEs or private customers without readily available CO2 data.
#3 Transparency of the Assessment Process
Users can easily navigate through the EU Taxonomy assessment processes thanks to diagram flows, which help to follow the different assessment stages, promoting transparency and clarity.
#4 Geological and Climate Risk Assessment through Geolocation
By simply entering the address of the project under assessment, the Taxo Tool can retrieve all geological and climate risks related to that specific geographic coordinates. This service uses the data of Munich Re.
#5 Always up to date
Any regulatory change will be automatically integrated within the solution.
#6 Ready-to-go
The AI-Suite is immediately available thanks to cloud computing (SaaS).
The TAXO TOOL addresses banks, saving banks, insurance and investment companies, fund managers, consulting firms, and companies falling under the EU Taxonomy regulation.
_AI Solution for Sustainable Finance
Dydon AI’s solution for the EU Taxonomy (TAXO TOOL) – developed in collaboration with the Association of German Public Banks (VÖB), and its subsidiary VÖB-Service – guides companies and bank advisors with their clients through the EU Taxonomy assessment process facilitating it.
Benefit from our award-winning digitisation of the EU Taxonomy regulation allowing seamless assessment of the alignment with the Substantial Contribution, the Do No Significant Harm criteria, and the Minimum Safeguards.
Generate an audit-ready export in just a few clicks. Our AI-based automation and workflows simplify every stage of the reporting process.
_Award winner
TAXO TOOL had been awarded as the “Best taxonomy data solution for ESG” at the ESG Insight Awards 2023, and winner of the Innovation Award at the Global Sustainable Digital Finance Forum in Zürich in 2022.
_TAXO TOOL Testimonial: Sparkasse Bremen
If there is one word that would describe your experience with Dydon AI and VÖB-Service, what would it be and why?
“Innovative partnership: As a network organisation, Sparkasse Bremen stands for agile processes and hierarchy-free structures. We perceived this orientation in the project participants from Dydon AI and VÖB-Service. AI-based processes, fast interactions, and direct communication at all levels are still the focus of our cooperation today. We appreciate that very much!” Kevin Zimnik, Senior Manager Sustainable Finance, and Thorsten Roth, Senior Specialist Projects at Sparkasse Bremen are the project managers responsible for the introduction of the TAXO TOOL and the associated rollout process at Sparkasse Bremen.
Our Partnership with VÖB and VÖB-Service
The TAXO TOOL, has been developed in partnership with Bundesverband Öffentlicher Banken Deutschlands (VÖB), and VÖB-Service GmbH. The VÖB represents 59 member banking institutions, including the regional banks as well as the promotional banks owned by the federal and state governments.
