Which of the following is one of the EU Taxonomy states conditions for an economic activity to be considered environmentally sustainable.

Question

BlackTom AI · Accepted Answer

EU Taxonomy requires an economic activity to make a substantial contribution to at least one EU environmental objective, while also meeting additional conditions — one of which is the “do no significant harm” (DNSH) requirement.

1. Relevant knowledge points and concepts
- The EU Taxonomy sets criteria for environmentally sustainable activities based on: (a) substantial contribution to at least one of six environmental objectives; (b) the activity must do no significant harm (DNSH) to any of the other objectives; and (c) compliance with minimum social and governance safeguards (e.g., OECD Guidelines, UN Guiding Principles on Business and Human Rights).  
- The six environmental objectives are: climate change mitigation; climate change adaptation; sustainable use and protection of water and marine resources; transition to a circular economy; pollution prevention and control; and protection/restoration of biodiversity and ecosystems.  
- Technical screening criteria define what counts as a “substantial contribution” and what constitutes DNSH.

2. Complete reasoning process step by step
- Step 1: Check which candidate conditions match the Taxonomy’s required conditions.  
- Step 2: Identify that the Taxonomy requires at least one substantial contribution (not three), a DNSH assessment, and minimum safeguards.  
- Step 3: Match each answer option to those requirements.

3. Intermediate steps / specifics
- “Contributing substantially to at least three environmental objectives” is incorrect: Taxonomy requires substantial contribution to at least one objective, not three.  
- “Complying with the highest social and governance standards” is incorrect: Taxonomy requires compliance with minimum safeguards (not an open-ended “highest” standard).  
- “Doing no significant harm to any of the environmental objectives” exactly matches the DNSH condition in the Taxonomy.

4. Why the correct answer is correct
- DNSH is explicitly one of the core conditions: even if an activity substantially contributes to one objective, it cannot significantly harm the other objectives. That exact phrase and concept (“doing no significant harm”) is embedded in the regulation and technical screening.

5. Why the other options are incorrect (brief)
- Option 1: Misstates the required number of objectives (one required, not three).  
- Option 2: Overstates the requirement—Taxonomy requires minimum safeguards, not necessarily “highest” social and governance standards.

6. Conclusion / confirmation
This confirms the correct answer is: "doing no significant harm" to any of the environmental objectives, matching the provided answer.

Which of the following is one of the EU Taxonomy states conditions for an economic activity to be considered environmentally sustainable. Single choice

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