Transforming Tomorrow Do No Significant Harm: Taxonomies and Sustainability (AKA: The Stuffed Badger Episode)
What is a taxonomy? Why are they important? How do they touch upon sustainability? And why should anyone with an interest in financial markets pay them attention?
Dr Charika Channuntapipat knows more about taxonomies than most people – certainly than Paul – and is perfectly placed to answer all these questions. Charika is a researcher and social scientist based in Bangkok, Thailand, where she works for the Thai Stock Exchange.
She gives us insight into how taxonomies decide which economic activities are environmentally sustainable, what the key objectives are, and how these and their enforcement can vary from country to country, and region to region. We discuss the concepts of the objectives (to which taxonomies seek to channel funding); Do No Significant Harm (DNSH), and its importance when deciding if an action is considered ‘green’; and Minimum Social Safeguards (MSS), which relate to human rights and community impacts.
Charika also tells us about the overall sustainability picture in Thailand – both environmentally and economically – and how the government has strengthened governance around sustainability and is pursuing ambitious climate change goals.
We learn how the Thailand taxonomy is a living document, that can evolve as sustainable technologies and endeavours become obsolete. And we discuss the importance of varied and local expertise in shaping policies, the complications of involving so many voices in its creation, and how different taxonomies around the world can complement each other.
And find out why Paul and Jan have gone down a road of confusion with stuffed badgers.
Enjoy a taste of the fast-moving world of taxonomies around the world here: https://www.climatebonds.net/expertise/taxonomy/world-taxonomies
And see more on the second phase of Thailand’s Taxonomy here: https://www.bot.or.th/en/news-and-media/news/news-20250527.html