'Platform on Sustainable Finance's draft reports on a social taxonomy and on an extended taxonomy to support economic transition', 12 July 2021

On 12 July 2021 the Platform on Sustainable Finance published 2 draft reports

• Platform on Sustainable Finance's draft report on a social taxonomy (PDF)
• Platform on Sustainable Finance's public consultation report on Taxonomy extension options linked to environmental objectives (PDF)

The 2 drafts are important steps in Platform’s main deliverables to advise the Commission on potential social and extended environmental taxonomy...

Draft proposal for a social taxonomy

The draft report will argue that in the 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 that substantially contribute to environmental objectives, a social taxonomy would do the same 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 opportunities to contribute to these objectives.

Public Consultation Report on Taxonomy extension options linked to environmental objectives

This draft proposal will be focussed on support for the environmental transition needed in the whole economy – it proposes further clarity on both: activities that are significantly harmful to environmental sustainability, and those that have no significant impact on it. The aim is to support transitions in areas currently of "significant harm"...

Calls for feedback

The Platform welcomes stakeholder feedback on the draft reports through two calls for feedback, which are running from 12 July to 6 September 2021 at 12:00 CEST (midday), after the original deadline of 27 August was extended.

• Call for feedback on the report on social taxonomy
• Call for feedback on the proposal for an extended taxonomy to support economic transition

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...

See also:

• EU Platform presentation on proposed "Social" Taxonomy - webinar recording , 12 July 2021
• Report proposes a social taxonomy grounded in human rights - statement by the Danish Institute for Human Rights, 15 July 2021