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

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582