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EU Puts Key Plank of ESG Rulebook on Hold Amid Infighting

  • Social taxonomy shelved indefinitely, people familiar say
  • Move may put ‘S’ in ESG off regulatory map till end of decade
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The next milestone in Europe’s efforts to create a global benchmark for ESG investing has been shelved indefinitely as officials balk at devoting resources to a process that’s already marred by deep political division, according to people familiar with the matter. 

The so-called social taxonomy, which was to be the next plank in the European Union’s years-long process to create a guidebook for driving capital into activities that meet environmental, social and governance standards, is unlikely to see the light of day in the next few years, the people said. It had tentatively been slated for debate before the current commission ends its term in 2024.