scholarly journals Will the EU Taxonomy Regulation Foster Sustainable Corporate Governance?

2021 ◽  
Vol 13 (21) ◽  
pp. 12316
Author(s):  
Alessio M. Pacces
Keyword(s):  
Corporate Governance ◽  
Environmental Sustainability ◽  
Institutional Investors ◽  
Law And Economics ◽  
Securities Regulation ◽  
Environmentally Sustainable ◽  
Financial Products ◽  
Principal Agent Problem ◽  
Sustainability Disclosure ◽  
The Eu

EU securities regulation has established a taxonomy of environmentally sustainable activities. This article discusses, from a law and economics standpoint, the potential of this taxonomy to support sustainable corporate governance. Corporate governance can be an efficient way to channel investor preferences towards sustainability because the concentration of institutional shareholding has lowered the transaction costs of shareholder action. However, there is a principal-agent problem between institutional investors and their beneficiaries, which depends on greenwashing and undermines sustainable corporate governance. This article argues that introducing environmental sustainability into EU mandatory disclosure aligns the institutional investors’ incentives with the interest of their beneficiaries and may foster the efficient inclusion of sustainability in corporate governance. The argument is threefold. Firstly, the EU taxonomy may curb greenwashing by standardizing the disclosure of environmental sustainability. Secondly, this information may become salient for the beneficiaries as the same standards define the sustainability preferences to be considered in recommending and marketing financial products. Thirdly, sustainability disclosure prompts institutional investors to compete for sustainability-minded beneficiaries. Being unable to avoid unsustainable companies altogether, institutional investors are expected to cater to beneficiaries’ preferences for environmental sustainability using voice instead of an exit.

Sustainable Finance in Europe

2022 ◽  
pp. 114-130
Author(s):  
Sonia Marcos ◽  
Maria-Jesús Castrillo
Keyword(s):  
Economic Activity ◽  
Future Application ◽  
The European Union ◽  
Information Costs ◽  
Investor Confidence ◽  
Environmentally Sustainable ◽  
Financial Products ◽  
Sustainable Finance ◽  
Voluntary Basis ◽  
The Eu

The European Union has a clear strategy on how sustainable development should be financed. However, there is still no regulation that defines which activities can be considered sustainable and which cannot. Private initiative has taken the lead in recent years with the publication of different taxonomies and principles applicable on a voluntary basis to green financial products and social projects. The EU taxonomy, issued in 2020, establishes criteria to determine whether an economic activity is environmentally sustainable, and the green bond standard is in the consultation period in 2021. The EU taxonomy will increase investor confidence in green financial products, prevent greenwashing, and reduce information costs. This chapter reviews the evolution and future application of the EU taxonomy, the EU green bond standard, and the need to adopt a taxonomy for socially sustainable activities.

The role of environmental sustainability in the freight transport mode choice

2017 ◽  
Vol 47 (7) ◽  
pp. 560-602 ◽  
Author(s):  
Anu Bask ◽  
Mervi Rajahonka
Keyword(s):  
Literature Review ◽  
Systematic Literature Review ◽  
Environmental Sustainability ◽  
Freight Transport ◽  
Intermodal Transport ◽  
Content Type ◽  
Transport Mode ◽  
Environmentally Sustainable ◽  
The Eu

Purpose Transport is the European Union (EU) sector that produces the second highest amount of greenhouse gas emissions. In its attempts to promote the environmentally sustainable development of transport, the EU has focussed on intermodal transport in particular – but with limited success. It is important to understand how freight transport is selected, which criteria are used and what role environmental sustainability and intermodal transport play in the selection. Therefore, the purpose of this paper is to focus on the role of environmental sustainability and intermodal transport in transport mode decisions. The authors look at this issue from the perspective of logistics service providers (LSPs) and buyers, as they are important stakeholders in guiding this process. Design/methodology/approach To gain a holistic view of the current state of research, the authors have conducted a systematic literature review of the role of environmental sustainability and intermodal transport in transport mode decisions. The authors have further examined the findings concerning requests for quotations (RfQs), tenders and transport contracts, as these are also linked to decisions on transport choice. Findings The findings from the literature review include the results of descriptive and structured content analysis of the selected articles. They show that the discussion on environmental sustainability and intermodal transport as a sustainable mode, together with the transport mode selection criteria, RfQs/tenders and transport contracts, is still a rather new and emerging topic in the literature. The main focus related to the selection of transport mode has been on utility and cost efficiency, and only recently have issues such as environmental sustainability and intermodal transport started to gain greater attention. The findings also indicate that the theoretical lenses most typically used have been preference models and total cost theories, although the theoretical base has recently become more diversified. Research limitations/implications There is still a need to extend the theoretical and methodological base, which could then lead to innovative theory building and testing. Such diverse application of methodologies will help in understanding how environmental sustainability can be better linked to mode choice decisions. Practical implications The findings will be of interest to policy makers and companies opting for environmentally sustainable transport solutions. Social implications If the EU, shippers and LSPs take a more active stance in promoting environmentally sustainable transformation models, this will have long-lasting societal impacts. Originality/value It seems that this systematic literature review of the topic is one of the first such attempts in the current body of literature.

scholarly journals Classification of Sustainable Activities: EU Taxonomy and Scientific Literature

2020 ◽  
Vol 12 (16) ◽  
pp. 6460
Author(s):  
Caterina Lucarelli ◽  
Camilla Mazzoli ◽  
Michela Rancan ◽  
Sabrina Severini
Keyword(s):  
Environmental Sustainability ◽  
Scientific Production ◽  
Economic Activities ◽  
Scientific Publications ◽  
Environmentally Sustainable ◽  
Geographic Patterns ◽  
Environmental Objectives ◽  
Modelling Analysis ◽  
The Eu

In March 2020, the European Commission published the EU Taxonomy, a classification system of economic activities that can be considered environmentally sustainable. Motivated by this policy initiative, we propose a bibliometric analysis, based on the Web of Science database for the period January 1990–March 2020, regarding the extant scientific production related to the EU Taxonomy environmental objectives and macro-sectors. We find that a considerable number of scientific works—161,595 publications—have investigated Taxonomy-related areas, showing that the EU Taxonomy defined a working method, based on the cooperation among regulators, academics, and industry, representing a valuable example of evidence-based policy making. Furthermore, topic modelling analysis shows that extracted papers focused on improvements in production processes, innovation, and environmental performance. Thus, exploiting time and geographic patterns of the scientific publications, we perform a multivariate analysis to investigate its relationship with subsequent levels of pollution. Our evidence shows that, for the past, a higher level of EU Taxonomy-related publications is associated with a lower level of CO2 emissions, supporting the view that scientific production has a societal impact in terms of environmental sustainability. Accordingly, now that EU Taxonomy-related topics have been incorporated into policy measures, further positive environmental effects are expected from here on out.

The Existence of Geothermal Energy in Communication Perspective and Sustainable Environment in Indonesia

2019 ◽  
Vol 4 (3) ◽  
pp. 43-52
Author(s):  
Indriyati Kamil ◽  
Oekan S Abdoellah ◽  
Herlina Agustin ◽  
Iriana Bakti
Keyword(s):  
Environmental Sustainability ◽  
Geothermal Energy ◽  
Nature Reserve ◽  
Nature Reserves ◽  
Communication Model ◽  
Conservation Areas ◽  
Conservation Area ◽  
Environmentally Sustainable ◽  
Communication Models ◽  
The Government

This article highlights the dynamics of geothermal energy in the Kamojang nature reserve in Indonesia. A nature reserve is a conservation area that must be protected and preserved, because it has unique flora and fauna, and rare ecosystems whose existence is threatened with extinction. After going through a long study process by an integrated team, the government finally made a policy to change the function of the nature reserve into a Nature Tourism Park. Changes in policy changes to the function of nature reserves cause pros and cons in the community, and cause conflicts between government and environmental activists. The purpose of this study is to identify the factors that cause changes in the function of nature reserves into natural tourism parks in the Kamojang conservation area of Indonesia, as well as to identify appropriate communication models in the management of geothermal energy through communication and environmentally sustainable approaches. Research findings show that the factors that cause changes in the function of nature reserves into tourist parks include; the interests of geothermal energy to meet national energy needs and electricity infrastructure, accommodate the needs of surrounding communities that utilize water resources in conservation areas, and restore ecosystems. The communication model for geothermal energy management that we propose at the same time is also a novelty namely; ecopopulism approach, negotiation approach, collaboration, and equating meaning and orientation to environmental sustainability. Type of Paper: Empirical Keywords: Geothermal Energy, Nature Reserves, Conservation Policies, Communication Models and Sustainable Development.

Behavioral Law and Economics

2018 ◽  
Author(s):  
Eyal Zamir ◽  
Doron Teichman
Keyword(s):  
Economic Analysis ◽  
Bounded Rationality ◽  
Law And Economics ◽  
Empirical Studies ◽  
Securities Regulation ◽  
Critical Examination ◽  
Entire Body ◽  
Economic Analysis Of Law ◽  
Behavioral Law And Economics ◽  
The Impact

In the past few decades, economic analysis of law has been challenged by a growing body of experimental and empirical studies that attest to prevalent and systematic deviations from the assumptions of economic rationality. While the findings on bounded rationality and heuristics and biases were initially perceived as antithetical to standard economic and legal-economic analysis, over time they have been largely integrated into mainstream economic analysis, including economic analysis of law. Moreover, the impact of behavioral insights has long since transcended purely economic analysis of law: in recent years, the behavioral movement has become one of the most influential developments in legal scholarship in general. Behavioral Law and Economics offers a state-of-the-art overview of the field. The book surveys the entire body of psychological research underpinning behavioral analysis of law, and critically evaluates the core methodological questions of this area of research. The book then discusses the fundamental normative questions stemming from the psychological findings on bounded rationality, and explores their implications for establishing the aims of legislation, and the means of attaining them. This is followed by a systematic and critical examination of the contributions of behavioral studies to all major fields of law—property, contracts, consumer protection, torts, corporate, securities regulation, antitrust, administrative, constitutional, international, criminal, and evidence law—as well as to the behavior of key players in the legal arena: litigants and judicial decision-makers.

Disciplinary power in corporate governance: A Foucauldian analysis of the emergence and development of proxy advisors

2021 ◽  
pp. 103237322098623
Author(s):  
Damien Lambert
Keyword(s):  
Corporate Governance ◽  
Institutional Investors ◽  
Historical Analysis ◽  
General Meeting ◽  
Global Scale ◽  
Disciplinary Power ◽  
Record Keeping ◽  
Corporate Executives ◽  
Proxy Advisors ◽  
Foucauldian Analysis

Prior research in corporate governance has extensively investigated the mechanisms through which a variety of actors (financial analysts, investment managers, shareholder activists) monitor and discipline corporate executives. However, one recently emerged actor has received little attention so far: the proxy advisory firm. Mobilising Foucault’s concept of disciplinary power, this study uses historical analysis to examine the role of proxy advisors in corporate governance. This article shows that proxy advisors actively contributed to developing and implementing disciplinary mechanisms. This involves (1) hierarchical observations of corporations and their executives on a global scale. These observations are made available to institutional investors on proxy advisors’ voting platforms which have Panopticon-like features; (2) normalisation of judgements through the provision of generic voting policies, generic voting recommendations and corporate governance ratings prepared by proxy advisors and delivered to many institutional investors; (3) ritualised examination of the performance of corporations and of their executives during the annual general meeting, including record-keeping of all past voting results.

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