RT info:eu-repo/semantics/article
T1 The EU Taxonomy, sustainability reporting and financial institutions: understanding the elements driving regulatory uncertainty
A1 García Torea, Nicolás
A1 Luque Vílchez, Mercedes
A1 Rodríguez Gutiérrez, Pablo
K1 Banks
K1 EU Taxonomy
K1 GAR
K1 Regulation
K1 Sustainability reporting
K1 Bancos-Contabilidad
K1 Banks and banking-Accounting
K1 Inversiones éticas
K1 Investments-Moral and ethical aspects
AB The EU Taxonomy Regulation relies on sustainability reporting to channel financial resources to sustainable activities. Financial institutions are key actors in the Taxonomy setting because they operate as financial intermediaries and have a dual role as both users and preparers of sustainability information. This paper investigates the perceived uncertainty that characterizes the sustainability reporting regulatory environment of a particular type of financial institution, banks, to identify the elements that generate that perception. Drawing on literature on regulatory uncertainty, this paper conducts a case study of the Spanish banking industry informed by interviews and complemented by other data sources. The analysis unveils two significant elements driving regulatory uncertainty: the Taxonomy’s lack of clarity regarding the operationalization of its measures and rules and the timeline and oversight of its implementation. The study also documents that the Taxonomy induces uncertainty in the non-regulatory environment due to its unpredictable impact on banks’ reputation and market competition, as well as to the changes it provokes in banks’ internal structures and processes to address regulatory requirements. As the perception of regulatory uncertainty represents an impediment to compliance, understanding the elements giving rise to it can help to mitigate such perception and facilitate the fulfillment of regulatory demands. This investigation offers implications for policy and practice to facilitate the production of the sustainability information banks must disclose according to the EU Taxonomy, particularly the green asset ratio.
PB Routledge
SN 0155-9982
YR 2024
FD 2024-06
LK http://hdl.handle.net/10259/9857
UL http://hdl.handle.net/10259/9857
LA eng
NO Nicolas Garcia-Torea and Mercedes Luque-Vílchez acknowledge the financial support provided by the Spanish Ministry of Science and Innovation (TED2021-129520B-I00), Agencia Nacional de Investigación (PID2021-122389OB-I00) and Junta de Castilla y León (BU069P20 y BU029P23).
DS Repositorio Institucional de la Universidad de Burgos
RD 22-ene-2025