Antje Schneeweiß
Managing Director of the Working Group of Church Investors in the Protestant Church in Germany and member of the EU-Platform on Sustainable Finance
She spoke with Thomas Mog, Project Manager Net Zero Banking Alliance Germany.
Dear Ms. Schneeweiß, you have been working on the topic of sustainable investments since 1991. This wealth of experience is quite scarce! What motivated you to take on this topic back then and how did you come to join the Platform on Sustainable Finance at EU level in 2020?
Schneeweiß: I originally studied philosophy, which was about ethics and values. I was personally attracted by the practical application at the level of the economy. I then worked for two asset managers and the Südwind Institute. At that time, this was still very much subsumed under the umbrella term ethical investments, although at that time I also dealt with green bonds and climate issues. In 2020, I joined the Working Group of Church Investors.
When the 2019 and 2020 environmental taxonomy came out, it was clear to me that a social counterpart was needed. I drafted a concept for this and applied to the EU Platform. I then was asked if I would also like to take over the reporting for the subgroup “Social Taxonomy”. There, the proposal for a basic structure of the social taxonomy emerged, which was published in February this year.
You are a rapporteur for Platform Subgroup 4 “Extending EU Taxonomy to Social Objectives”. What constitutes this task?
Schneeweiß: The group had two tasks defined by the EU Commission. One was to prepare a report on the possible structure of a social taxonomy. The second was to present implementation proposals for the minimum social and governance standards of the existing taxonomy regulation. I am responsible for ensuring that the group, in consultation with the whole Platform, produces these two reports. The first report was presented to the public in March 2022 and the public consultation for the second report ran until August 22, 2022.
How would you summarise the goals of the Social Taxonomy?
Schneeweiß: The three goals of our proposed social taxonomy are: 1. decent work, 2. decent living standards and protection of end users, and 3. sustainable communities and societies. If an economic activity makes a substantial contribution to one of these three goals and does not harm the other two, then it can be called socially sustainable. If social housing is built or access to medical products is facilitated without violating labor rights, for example, then this is a socially sustainable activity and investments in this activity could be labelled accordingly.
“If an economic activity makes a substantial contribution to the goals and does not harm the other two, then it can be called socially sustainable.”
What is the relationship between the Social Taxonomy and Just Transition?
Schneeweiß: Just Transition describes the change towards a sustainable economy and society that is as inclusive as possible for all parts of society. The social taxonomy we propose identifies as socially sustainable activities, such as the training of employees in sectors that are affected by the green transition and are at risk of losing their jobs.
Should the social taxonomy be used more in a risk-reducing or impact-driving way?
Schneeweiß: From the orientation, it is clearly about impact enhancement. At the same time, the risk-reducing effect, especially for society as a whole, is of course automatically included. Ultimately, there are two sides to the same coin.
What potential do you see for the application of the Social Taxonomy in the field of sustainable financing?
Schneeweiß: First of all, it is about showing which economic activities and projects are particularly desirable from a social perspective. This includes, for example, activities that improve access to health services or to housing, or that improve access to housing.
Thinking forward, this results in visibility of these activities for sustainable investors. This positive visibility for actors should not be underestimated. Social investments are increasingly in demand from investors.
What are the next steps?
Schneeweiß: At the moment we are seeing a lot of new EU regulations on sustainability and sustainable investments that companies and financial market participants have to implement. This is probably not the right time to additionally implement another complex project like a social taxonomy. I understand that and I am waiting for the EU Commission’s report at the end of the year in which they will describe how they will deal with this issue further.
Mog: Thank you very much for the insights into the goals and the context with regards to the social taxonomy, Ms. Schneeweiß!