EU Social Taxonomy

What is the proposed Social Taxonomy?

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: 

• Labour rights and working conditions
• Social protection and inclusion
• Non-discrimination
• The right to healthcare, housing, education and food
• Unemployment assistance
• Consumer protection
• Peaceful and inclusive societies
• Fighting corruption and tax evasion

The Social Taxonomy blueprint has been built around 3 beneficiary groups, under 3 overarching social objectives:

• Decent work, people in their working lives or as workers
• Adequate living standards and wellbeing for end-users
• Inclusive and sustainable communities and societies

Each of these key objectives has several sub-objectives. 

How does the proposed Social Taxonomy complement the Sustainable Taxonomy?

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.