Version 4 represents the culmination of a multi-year, multi-stakeholder effort that began with the release in 2021 of the conceptual framework of the ASEAN Taxonomy, including its Environmental Objectives, and Foundation Framework and Plus Standard as its components. The ASEAN Taxonomy was expanded through successive iterations to include the complete Foundation Framework and technical screening criteria (TSC) for all six focus and three enabling sectors of the Plus Standard. With Version 4, the ASEAN Taxonomy now offers complete Plus Standard coverage across the identified focus and enabling sectors, Grandfathering rules for the Amber Tiers, and guidance on entity and portfolio assessment, among others.
Key updates in the ASEAN Taxonomy Version 4 include:
- Inclusion of TSC for the three (3) remaining focus sectors: Agriculture, Forestry and Fishing; Manufacturing; Water Supply, Sewerage Waste Management and Remediation;
- Inclusion of TSC for the two (2) remaining enabling sectors: Information & Communication; and Professional, Scientific & Technical Activities;
- Introduction of a methodology for reporting on entities, portfolios, and financial instruments based on exposure to underlying Activities across the Taxonomy’s classification tiers;
- Updates to grandfathering criteria to include grandfathering of Amber Tiers 2 and 3; and
- Enhancement of Essential Criteria 3, Social Aspects, updated to consider informal workers in labour and social protection systems.
Commenting on the release, Mr. Mardini Eddie, Chair of the ASEAN Taxonomy Board, said: “The launch of Version 4 marks the completion of a regionally developed, inclusive, and credible taxonomy for ASEAN. It reflects our shared commitment to sustainable development and provides a common language for guiding capital flows towards activities that support climate resilience and environmental integrity. We would like to thank the Asian Development Bank (ADB) for its invaluable support throughout the development of the ASEAN Taxonomy, and convey our gratitude to all stakeholders for their valuable input throughout this journey. The ASEAN Taxonomy Board looks forward to supporting implementation across the region, reflecting its commitment to capacity building efforts to ensure effective adoption and to empower stakeholders across ASEAN with the knowledge and tools needed to operationalize the Taxonomy.”
The release of Version 4 marks the completion of the development phase of the ASEAN Taxonomy. The ATB will continue to maintain and update the Taxonomy as a living document, ensuring it remains responsive to technological, scientific, and market developments. The ATB will also be shifting its focus to encouraging adoption of the Taxonomy, including conducting targeted capacity building activities.
Following this release of the ASEAN Taxonomy Version 4, the ATB will conduct targeted consultations with key stakeholders and users of the ASEAN Taxonomy, details of which will be firmed up in due course. Should you have any feedback or queries on the ASEAN Taxonomy Version 4, please email them to
[email protected]The ASEAN Taxonomy Version 4 is now available for download on the following websites:
