Featured Product

    EC Platform Publishes Final Report on Social Taxonomy

    February 28, 2022

    The European Commission's Platform on Sustainable Finance published the final report on social taxonomy. The report presents a proposed structure for a social taxonomy within the present European Union legislative environment on sustainable finance and governance. This environment currently consists of the existing legislation and the proposed initiatives on the European Union taxonomy, the proposed Corporate Sustainability Reporting Directive or CSRD, the Sustainable Finance Disclosures Regulation or SFDR, and the sustainable corporate-governance initiative.

    The suggested structure of the social taxonomy employs certain structural aspects of the environmental taxonomy—namely, development of social objectives, types of substantial contributions, “do no significant harm” criteria, and minimum safeguards. Apart from the structural elements of a social taxonomy, the report suggests ways to ensure a balance in the relationship between an environmental taxonomy and a social taxonomy. One suggestion is that just as social and governance-related minimum safeguards are part of the environmental taxonomy, minimum environmental safeguards should be part of the future social taxonomy. The other suggestion is to integrate the social and environmental taxonomy more closely, with the environmental and social “do no significant harm” criteria being valid for both the social and the environmental activities. Finally, the report presents some requirements for future social criteria, and indicators within this framework, alongside ideas about the next steps for developing a social taxonomy. The next steps for developing a social taxonomy would be to

    • Clarify the minimum safeguards according to the scoping note
    • Conduct a study on the impact of a social taxonomy, considering different options for application and designs
    • Work out a rationale for prioritizing objectives and sub-objectives
    • Prioritize objectives according to the rationale
    • Define the "substantial-contribution" and “do no significant harm” criteria for the first objective(s) and sectors

     

    Related Links

     

    Keywords: Europe, EU, Banking, Insurance, Securities, ESG, Sustainable Finance, Social Taxonomy, Platform on Sustainable Finance, CSRD, NFRD, SFDR, EC, Subheadline

    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206