Legal & Regulatory News

Platform on Sustainable Finance seeks feedback on extension of EU Taxonomy environmental objectives and on new social taxonomy

On 12 July 2021, the Platform on Sustainable Finance (the Platform) published two draft reports: (i) the 'Draft Report by Subgroup 4: Social Taxonomy' (the Draft Social Taxonomy Report) and (ii) the 'Public Consultation Report on Taxonomy extension options linked to environmental objectives' (the Draft Taxonomy Extension Report).

The Draft Social Taxonomy Report examines the possibility of extending the EU Taxonomy to include social objectives and how this new social taxonomy would operate alongside the existing environmental objectives.

The Draft Taxonomy Extension Report examines and debates the merits of extending the EU Taxonomy 'beyond green' to include significantly harmful and no significant impact activities. Whilst acknowledging that there are arguments for and against extending the EU Taxonomy beyond green, the Platform suggests an extended EU Taxonomy could help to identify and prioritise the economic activities that best support the urgent transition towards better environmental performance.

The Platform has invited stakeholder feedback on the draft reports through two calls for feedback which run until 27 August 2021.

Click here to access the draft reports.

Click here to submit feedback on either draft report.