WHO IS GOING TO WIN: THE EU ESG REGULATION OR THE REST OF THE WORLD? – A CRITICAL REVIEW

Ion Frecautan () and Andreea NITA (danila) ()
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Ion Frecautan: Department of Economics, Economic Informatics and Business Administration, Faculty of Economics, Administration and Business, “Stefan cel Mare†University of Suceava, Suceava, Romania
Andreea NITA (danila): Department of Economics, Economic Informatics and Business Administration, Faculty of Economics, Administration and Business, “Stefan cel Mare†University of Suceava, Suceava, Romania

Annals of Faculty of Economics, 2022, vol. 2, issue 2, 109-120

Abstract: This paper aims to explore the past and the present challenges of EU ESG regulatory framework. Moreover, it attempts to make an in-depth analysis of the major ESG frameworks and standards used at a global level: GRI, SASB, IIRC, CDP, CDSB, TCFD, CSRD, and EU Taxonomy. The analysis considers 5 criteria: framework vs. standard, shareholder perspective, reporting format, metrics, and materiality. In addition, we draw insights into the complexity of the EU ESG reporting scheme and its added value compared to already existing frameworks and standards. Our results have implications on three levels: 1) for reporting companies that are faced with the option of selecting a reporting framework that will minimize the cost of compliance but also help them implement their climate transition strategy; 2) for employees and consumers of goods and services provided by companies that incorporate ESG in their long term economic activities and 3) policymakers that want to make sure they design the best standards that will ensure a smoother and effective transition to a low carbon economy.

Keywords: ESG; SDG; sustainable finance; EU Taxonomy (search for similar items in EconPapers)
JEL-codes: D53 G11 P34 Q56 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ora:journl:v:1:y:2022:i:2:p:109-120

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