35 years: Capital markets editorial
In this video, Keith talks us through the main points of the EU Social Taxonomy draft, a taxonomy being developed alongside the Sustainable Taxonomy, in order to encourage social investment.
In this video, Keith talks us through the main points of the EU Social Taxonomy draft, a taxonomy being developed alongside the Sustainable Taxonomy, in order to encourage social investment.
Finance Unlocked is the video learning platform built for finance professionals.
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
5 mins 10 secs
The centrepiece of the EU’s ambitions to become carbon-neutral by 2050 is the EU Taxonomy for Sustainable Activities. However, policymakers have already started work on another project; drafting a Social Taxonomy. The Taxonomy will be designed to work in parallel with the Sustainable Taxonomy and it will create a framework that accelerates the flow of private capital to social projects.
Key learning objectives:
Understand the purpose of the proposed Social Taxonomy
Outline how it is similar and differs from the Sustainable Taxonomy
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
The EU is attempting to create a second Taxonomy to run parallel to the Sustainable Taxonomy, a Social Taxonomy. It will create a framework that accelerates the flow of private capital to social projects.
Coming up with a blueprint for social activities is challenging because it covers difficult areas to resolve such as poverty, human rights, slavery and child labour; areas that can’t be quantitatively assessed by science like greenhouse gas emissions can.
The Social Taxonomy working group has mapped out 8 headings to define the scope of its work:
The Social Taxonomy blueprint has been built around 3 beneficiary groups, under 3 overarching social objectives:
Each of these key objectives has several sub-objectives.
The idea is that the Social Taxonomy will have a structure that dovetails with its sustainable cousin. However, there is also a contradiction – which policymakers are aware of – arising from the fact that while most economic activity has an adverse impact on the environment; creating decent jobs, improving human wellness, and producing socially beneficial goods and services all lead to social benefits. All sounds great, but it will come at a cost to the environment.
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
12:37
06:19
16:02
08:09