Business Diplomacy Today Podcast
Business Diplomacy Today addresses contemporary international relations and geopolitics, looking at the issues from a business perspective. It helps business leaders anticipate changing political and societal trends, build and leverage political networks and take a proactive stake in societal and political matters that influence their business environment.
Episode #003: ESG Taxonomies
The host Matthias Catón and his guest Karsten Löffler talk about ESG Taxonomies. ESG stands for “Environmental, Social, and Governance” and essentially means how companies “behave” well as corporate citizens. Taxonomies measure this. The best known is the EU Taxonomy, but as we learn, it is not the only one in force or being considered worldwide.
Karsten explains that ESG taxonomies cannot judge “good” or “bad” behavior. They are merely instruments for transparency, particularly for financial investors and banks. They have become mandatory for more and more companies.