This edition of the Finance Briefing brings you insightful information on sustainable finance taxonomy (SF taxonomies). Discover its core concepts, key users, applications for promoting deforestation-free supply chains, practical examples of how it can support smallholder farmers and vulnerable groups (LCs – Local Communities), and the latest developments in SAFE countries.
SF Taxonomies are classification systems that provide a clear and consistent framework and help identify which economic activities make a substantial contribution and/or do no harm to climate-related, environmental and social objectives.
Through defining this common language of what is “sustainable,” “green” or “social,” the common purpose of SF taxonomies is to support ambitious sustainable development goals, reduce greenwashing and strengthen investors’ confidence (SBFN, 2024), thus incentivizing public and private capital mobilization for sustainable economic activities.
