EU advisors believe that a taxonomy for socially-sustainable activities should be underpinned by existing global guidelines, and should cover both direct and indirect social impacts, according to documents seen by RI.
Two reports outline current thinking by the EU’s Platform on Sustainable Finance on how to extend the EU’s green taxonomy to social and environmentally harmful activities.
While the green taxonomy is required to use science in its assessment of business activities, the experts acknowledge that no such science is available for social activities. As a consequence, it says, the UN Guiding Principles on Business and Human Rights, the European Convention on Human Rights, and numerous other guidelines from the International Labour Organisation, EU, UN and OECD should “take the place of science”.
“To include the investors’ point of view, the ICMA Social Bond Principles and the IFC Performance Standards have also been considered,”