A European Social Taxonomy should include social aspects in a multi-cycle value chain

Ecopreneur.eu and our member organisations have been demanding the inclusion of social criteria in a comprehensive taxonomy for sustainable finance from the start. We therefore welcome the European Commission’s draft for a Social Taxonomy that would include social criteria in addition to economic and environmental aspects as part of the European Green Deal and a circular economy that is inclusive, sustainable and fair.

Together with our national members and ecopreneurs, we strongly agree that it is crucial to define what constitutes a social investment, as has been done in the case of environmental investments. Social aspects form an integral part of sustainability. More and more financial investors take social factors into account in their investments. The same holds for circularity, which should be integrated as well.

However, in our opinion, the draft report falls short of eight key aspects which will be crucial to making a Taxonomy work for SMEs and other key stakeholders of our economy.

Our new position paper that has been shared with the European Commission has all the details for you.