Do No Significant Harm (DNSH) assessments

Do No Significant Harm (DNSH) is an environmental risk assessment principle based on Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment. The main objective of the Do No Significant Harm principle is to assess the impact of business and economic activities on six environmental aspects:

• climate change mitigation
• adaptation to climate change
• sustainable use and protection of water and marine resources
• transition to a circular economy
• prevention and control of pollution
• protection and restoration of biodiversity and ecosystems

Do No Significant Harm aims to ensure that investments are sustainable and do not cause significant harm to the environment. This approach is particularly important at a time when more and more projects are seeking to achieve net-zero or climate neutrality status and are candidates for EU funding. The integration of environmental, social, and governance principles will play an increasingly important role in the absorption of bank and EU investments, with priority given to projects that will make the greatest contribution to decarbonising industries. The DNSH assessment will help to ensure that all environmental principles of interest to the EU are taken into account in project design.

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