Platform on Sustainable Finance's draft reports on a social taxonomy and on an extended taxonomy to support economic transition
On 12 July 2021 the Platform on Sustainable Finance published 2 draft reports
Platform on Sustainable Finance's draft report on a social taxonomy
12 July 2021
English (1.9 MB - PDF)
Platform on Sustainable Finance's report on taxonomy extension options linked to environmental objectives
12 July 2021
English (2.6 MB - PDF)
The 2 drafts are important steps in Platform’s main deliverables to advise the Commission on potential social and extended environmental taxonomy. Platform’s advice on this will feed in to Commission’s report on potential extension of taxonomy framework to be adopted by the end of 2021 as set under Article 26 (2a and 2b) of the Taxonomy Regulation.
Draft proposal for a social taxonomy
The draft report on a social taxonomy argues that in face of a pandemic, unanswered social questions around a sustainable transition, continuing human rights abuses and continuously rising costs for housing, the time is right to identify economic activities that contribute to advancing social objectives.
Just as the EU environmental taxonomy defines activities which substantially contribute to environmental objectives, a social taxonomy would serve this purpose for social objectives.
Built on the foundation of international norms and principles like the sustainable development goals (SDG) and the UN guiding principles for businesses and human rights, a social taxonomy would help investors to contribute to finance solutions around ensuring decent work, enabling inclusive and sustainable communities and affordable healthcare and housing. A social taxonomy would be a tool to help investors identify the opportunities to contribute to these objectives.
Draft proposal for an extended taxonomy to support economic transition
This draft proposal for an extended taxonomy to support economic transition aims to support the environmental transition needed in the whole economy. It gives further clarity on both: activities that are significantly harmful to environmental objectives sustainability, and activities that have no significant impact on environmental objectives. The aim is to support corporates currently operating their economic activities in “significantly harmful” manners, allowing them to transition to a level that does not cause significant harm. While these undertakings would not be necessarily reaching substantial contribution performance levels, these improvements could still be considered worthy of recognition.
The report sets out options to build on the existing taxonomy and its use.
Calls for feedback
The Platform will welcome stakeholder feedback on both drafts through two calls for feedback, which will run from 12 July to 27 August 2021.
After considering the stakeholder input, the Platform will submit final reports with their advice to the Commission in autumn 2021. The Commission will analyse and consider these reports in view of the continuous developing of the EU taxonomy, as anticipated in the new sustainable finance strategy.
Webinars
The Platform will be also holding a public webinar on both drafts to discuss these topics with interested stakeholders on 12 and 13 July 2021.
Meer over...