Statement: Final report on the social taxonomy is firmly grounded in human rights
The EU Platform on Sustainable Finance, of which the Institute is a member, published on February 28 its final report on the social taxonomy. A social taxonomy would enable investors to identify and allocate capital towards economic activities that are socially sustainable and make significant contributions to human rights objectives.
The EU Platform on Sustainable Finance is an advisory body assisting the European Commission in the development of its sustainable finance policies, including on the development of an EU taxonomy. The Institute is a member of the EU Platform and hopes that the report will inform the EU’s decision on the design of a social taxonomy.
Signe Andreasen Lysgaard, member the EU Platform on Sustainable Finance and Strategic Adviser at the Institute comments: ‘The publication of the report marks a milestone. Representing different expertise areas and constituencies, the Platform is recommending the EU to move ahead with the development of a social taxonomy which should be firmly based in human rights standards. I strongly hope the EU follows the recommendations and we will see the social taxonomy come to life over the coming years’.
The EU taxonomy has the potential to scale up and direct capital towards sustainable investment. It is a classification system, which currently establishes a list of environmentally sustainable economic activities aligned with six environmental objectives. A social taxonomy would extend the current taxonomy to include social sustainability objectives and related screening criteria.
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