Sustainable Finance: Taxonomy and Benchmarks

Key points:

• The EESC welcomes the proposals regarding the taxonomy as a first step towards implementing the action plan on financing sustainable growth and also welcomes the proposal relating to the development of new low-carbon and positive carbon impact benchmarks.

• It is of the utmost importance for the whole of the EU to take the same approach. The European taxonomy should replace the existing individual and scattered approaches in the Member States. Where possible, it should be based on existing international frameworks.

• The taxonomy should be seen as an evolving tool that needs regular review and adjustment.

• The proposals relate to environmental aspects. However, the EESC welcomes the fact that minimum social and governance guarantees must be taken into account. It will be important in future to work on extending the system to social sustainability and governance goals.

• The taxonomy should also take account of how it will be implemented by businesses, as they will be largely responsible for the "real" transition to a sustainable economy. Taking account of the differences between sectors and the size of businesses will definitely be needed.
• The Committee also sees information and communication as crucially important, with all stakeholders including the operational business environment, and with the general public. A corresponding plan could be developed that could also include financial education and training.