Tag Archives: ESG

Talk vs. Walk: Lessons from Silent Sustainable Investing of Mutual Funds 

By | January 12, 2024

In response to the escalating demand for sustainable investment options, the mutual fund industry is actively integrating sustainability into investment strategies and has introduced numerous financial products focused on sustainable investing. Consequently, mutual funds in capital markets can generally be categorized into two groups: self-identified ESG funds and non-ESG funds. Notably, over 70% of the… Read More »

Financing Green Transition: Bank-Nonbank Partnership  

By | January 11, 2024

At their current levels, sustainable investments are considerably below the levels needed to achieve decarbonization and the targets of the Paris Agreement. The World Economic Forum suggests that, to meet these goals, investments in nature-based solutions must quadruple by 2050, resulting in an annual investment exceeding $536 billion. Several strategies have been proposed, emphasizing the… Read More »

Corporate Sustainability Reporting And Blockchain  

By | January 10, 2024

Fostering sustainability in financial and economic activity has become one of the key priorities of policymakers and regulators around the world. In this direction, the recently enacted Corporate Sustainability Reporting Directive (CSRD)1 is a cornerstone of the European Union’s policy to achieve a sustainable economy, environment, and society. Through greater disclosure and transparency, the CSRD… Read More »

Environmental Externalities of Corporate Culture: Evidence from Firm Pollution 

By | January 8, 2024

In recent decades, there has been a marked increase in concerns about the adverse environmental impacts of corporate production activities. This heightened awareness stems from the growing threats posed by climate change, resource depletion, and ecological degradation. As companies continue to prioritize profit maximization and shareholder value, their toxic emissions have come under scrutiny. These… Read More »

Migration of Global Supply Chains:  A Real Effect of Mandatory ESG Disclosure 

By | December 21, 2023

The rising tide of environmental, social, and governance (ESG) awareness among many stakeholders is reshaping the corporate information environment. These stakeholders, driven by a desire for transparency, are demanding more detailed ESG-related information to evaluate corporate practices better. However, one significant limitation is the inconsistency in ESG disclosures among different jurisdictions regarding measurement, scope, and… Read More »

Does Monetary Policy Shape the Path to Carbon Neutrality? 

By | November 29, 2023

Recent years have seen a growing divergence in how central banks approach climate change. For instance, while Jerome Powell, Chairman of the Federal Reserve System, underscores that the Fed doesn’t view itself as a “climate policymaker,” the Bank of England and the European Central Bank have been more proactive, advocating for an economy-wide transition to… Read More »

Balancing Act: Regulators’ Dilemma in Climate-Related Disclosures 

By | November 2, 2023

Climate change is undeniably a significant and looming threat, impacting both the global environment and  the stability of our economies and financial sector. There is an immediate and pressing need to comprehensively assess and effectively manage this multifaceted risk. Recently, we’ve seen a proactive response from regulatory bodies and standard-setting organizations worldwide, as they’ve taken… Read More »

Climate change, tax avoidance, and shareholder value: Evidence from the Paris Agreement 

By | October 31, 2023

Climate change is undeniably one of the most pressing challenges of our era. The scientific consensus regarding the urgency of addressing climate change has spurred international efforts to combat its effects. Central to this endeavor is the Paris Agreement, a historic international climate accord signed by 196 countries in 2015. This agreement aims to mitigate… Read More »

Green Risk in Europe 

By | October 19, 2023

Aligning financial market activity with policy and regulation interventions is necessary to foster an orderly transition to a carbon-free economy. For instance, within the European Green Deal strategy, the European Union Taxonomy provides firms, investors, and policymakers with detailed criteria to assess the environmental sustainability of economic activities concerning climate change mitigation and adaptation, among… Read More »

Green Bonds: A Legal and Economic Analysis 

By | October 12, 2023

Green bonds are fixed-income securities issued by private corporations or public bodies (such as central banks or governments) to finance environmentally beneficial (“green”) projects. They are a relatively novel creation of international finance (what is considered the first ever green bond, the European Investment Bank’s “Climate Awareness Bond”, was created in 2007), but one that… Read More »