Book contents
- The Cambridge Handbook of EU Sustainable Finance
- The Cambridge Handbook of EU Sustainable Finance
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Preface
- Acknowledgements
- Part I Introduction
- Part II Ethics and Sustainability in Corporate Law, Corporate Governance and Conduct
- Part III Integrating Sustainability in Financial Markets Regulation
- 10 Sustainability-Related Materiality in the SFDR
- 11 Information Intermediaries and Sustainability
- 12 On the Sustainability of the MiFID II and IDD Investor Protection Frameworks
- 13 The EU Taxonomy Regulation and the Prevention of Greenwashing
- 14 Integrating Sustainable Finance into the Prospectus Regulation
- 15 Disclosure Regulation and Sustainability
- 16 Institutional Investors as the Primary Users of Sustainability Reporting
- 17 The Role of Non-Financial Disclosure and Liability in Sustainable Finance
- Part IV Ensuring Financial Stability and Sustainability
- Part V Financial Innovation and Sustainability
- Index
- References
15 - Disclosure Regulation and Sustainability
from Part III - Integrating Sustainability in Financial Markets Regulation
Published online by Cambridge University Press: 30 January 2025
- The Cambridge Handbook of EU Sustainable Finance
- The Cambridge Handbook of EU Sustainable Finance
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Preface
- Acknowledgements
- Part I Introduction
- Part II Ethics and Sustainability in Corporate Law, Corporate Governance and Conduct
- Part III Integrating Sustainability in Financial Markets Regulation
- 10 Sustainability-Related Materiality in the SFDR
- 11 Information Intermediaries and Sustainability
- 12 On the Sustainability of the MiFID II and IDD Investor Protection Frameworks
- 13 The EU Taxonomy Regulation and the Prevention of Greenwashing
- 14 Integrating Sustainable Finance into the Prospectus Regulation
- 15 Disclosure Regulation and Sustainability
- 16 Institutional Investors as the Primary Users of Sustainability Reporting
- 17 The Role of Non-Financial Disclosure and Liability in Sustainable Finance
- Part IV Ensuring Financial Stability and Sustainability
- Part V Financial Innovation and Sustainability
- Index
- References
Summary
The chapter analyses disclosure obligations of environmental and social sustainability risks that apply to companies in light of the growing importance to disclose sustainability risks. In doing so, it discusses the potential cross-border strategies for countries to develop international standards to support global convergence. It considers the international developments justifying the rationale for sustainability-related disclosures along with a discussion of the three models of cross-border disclosure regulation: (i) the home state approach, (ii) the host state approach and (iii) the equivalence approach. The chapter argues that the EU Corporate Sustainability Reporting Directive (CSRD) (2022) has adopted a mix-and-match model between the host state approach and the equivalence approach. Our analysis emphasises the extraterritoriality of EU sustainability disclosure regulation and compares it with the models followed by the United Kingdom, the United States and Switzerland. The different sustainability disclosure requirements between EU countries and non-EU countries suggests, therefore, that cross-border regulatory coordination is important. The paper recommends a model of ESG disclosure for capital markets that is based on the EU policy of equivalence modified by a recognition of the compliance approaches of certain foreign jurisdictions.
Keywords
- Type
- Chapter
- Information
- The Cambridge Handbook of EU Sustainable FinanceRegulation, Supervision and Governance, pp. 407 - 430Publisher: Cambridge University PressPrint publication year: 2025