[Work in progress] True and fair view of key performance indicators in evaluating companies’ compliance with the EU Green Taxonomy Regulation

Abstract

Aim: Identify the problems and challenges faced by accounting in the process of legitimizing organizations with financial mandatory key performance indicators that are designed to measure the share of the company's environmentally sustainable activities.

Methodology: Literature review, regulatory analysis, desk research.

Findings: The result of the study is the identification of problems and challenges in the reporting of KPIs for three elements, namely revenue, CapEx, OpEx of environmentally sustainable activities. These problems arise from an analysis of the basic qualitative characteristics of information: its representational faithfulness, completeness, neutrality and accuracy.

Implications: Provide a discussion base point for business practice in the area of sustainability reporting to mandatory financial KPIs, meeting the aims and objectives of the regulation.

Originality/value: The article contributes and fills the existing gap in the literature on  true and fair view of environmentally sustainable economic activity in line with the green taxonomy. Its results may provide inspiration for future re-search.