Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-745bb68f8f-mzp66 Total loading time: 0 Render date: 2025-01-31T10:04:23.107Z Has data issue: false hasContentIssue false

24 - Sustainability Enforcement through Multilevel Financial Tools

from Part IV - Ensuring Financial Stability and Sustainability

Published online by Cambridge University Press:  30 January 2025

By
Tomasz Braun
Edited by
Kern Alexander ,
Matteo Gargantini  and
Michele Siri
Kern Alexander
Affiliation:
University of Zurich
Matteo Gargantini
Affiliation:
University of Genoa
Michele Siri
Affiliation:
University of Genoa
Get access

Summary

The care for sustainability is one of the most urgent problems addressed by policy makers. It requires combined effort by multiple players for its efficiency. There are various levels at which different tools of multiple character are being introduced. Eventually, they turn into policies and actions by private businesses and public agencies. These different instruments can be of legislative and regulatory nature introduced on various levels: the UN conventions, communications, policies and protocols, the EU legislation, the Member States, regional and local authorities. As a result, they take a shape of instruments of various types. The range of non-regulatory tools that supplement the regulatory instruments is wide and often takes the form of financial measures. They can be divided into four groups – incentives, tradable instruments, fines and contractual compensations. All these instruments differ in terms of their character, reach and efficiency. Not necessarily being perfect, still, they contribute to the overall re-shift of approach and help transforming the current anxiety for the nature to tangible actions that protect it. The text addresses questions that are not limited to analyses of the efficiency of existing financial tools but also refer to what else could be done to enhance them and make them even more efficient.

Keywords

multi-level governancegreen bondssoft law instrumentsimplementation of sustainability policiessustainability enforcementsustainable corporate governance
Type
Chapter
Information
The Cambridge Handbook of EU Sustainable Finance
Regulation, Supervision and Governance
 , pp. 622 - 640
Publisher: Cambridge University Press
Print publication year: 2025

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Akbar, M. W., Yuelan, P., Zia, Z. and Arshad, M. I. (2021), ‘Role of fiscal policy in energy efficiency and CO2 emission nexus: An investigation of Belt and Road Region’, 2 Journal of Public Affairs, e2603.Google Scholar
Alexander, K. (2022), ‘Global financial governance and banking regulation: Redesigning regulation to promote stakeholder interests’, in Pauwellyn, J., Maggeti, M., Buthe, T. and Berman, A. (eds.), Rethinking Participation in Global Governance: Challenges and Reforms in Financial and Health Institutions (Oxford: Oxford University Press), 111–126.Google Scholar
Baldwin, R. and Cave, M. (2021), Taming the Corporation: How to Regulate for Success (Oxford: Oxford University Press).Google Scholar
Barnes, P. M. and Hoerber, T. C. (eds.) (2013), Sustainable Development and Governance in Europe: The Evolution of the Discourse on Sustainability (London: Routledge).Google Scholar
Bastedas-Orteaga, E. and Stewart, M. G. (2019), Climate Adaptation Engineering: Risks and Economics for Infrastructure Decision-Making (Oxford: Butterworth-Heinemann).Google Scholar
Bellucci, M. and Manetti, G. (2018), Stakeholder Engagement and Sustainability Reporting (London: Routledge).CrossRefGoogle Scholar
Busch, D., Ferrarini, G. and Grünewald, S. (2021), Sustainable Finance in Europe (London: Palgrave Macmillan).CrossRefGoogle Scholar
Choy, S., Jiang, S., Liao, S. and Wang, E. (2022), ‘Public environmental enforcement and private lender monitoring: Evidence from environmental covenants’, 10(1) Rotman School of Management Working Paper, 3860178.CrossRefGoogle Scholar
Colgan, J., Green, J. and Hale, T. (2021), ‘Asset revaluation and the existential politics of climate change’, 75(2) International Organization, 586–610.CrossRefGoogle Scholar
Crane, A., Matten, D., Glozer, S. and Spence, L. J. (2019), Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization (Oxford: Oxford University Press).Google Scholar
Cremasco, C. and Boni, L. (2022), ‘Is the European Union (EU) Sustainable Finance Disclosure Regulation (SFDR) effective in shaping sustainability objectives? An analysis of investment funds’ behaviour’, 9 Journal of Sustainable Finance & Investment, 1–19.Google Scholar
de Oliveira Neves, R. (2022), ‘The EU Taxonomy Regulation and its implications for companies’, in Camara, P. and Morais, F. (eds.), The Palgrave Handbook of ESG and Corporate Governance (London: Palgrave Macmillan).Google Scholar
Dietz, T. (2003), ‘What is a good decision? Criteria for environmental decision making’, 10(1) Human Ecology Review, 33–39.Google Scholar
Dobravec, V., Matak, N., Sakulin, C. and Krajacic, G. (2021), ‘Multilevel governance energy planning and policy: A view on local energy initiatives’, 11(2) Energy, Sustainability and Society, 1–17.CrossRefGoogle Scholar
Eicken, H., Danielsen, F., Sam, J.-M. et al. (2021), ‘Connecting top-down and bottom-up approaches in environmental observing’, 71(5) BioScience, 467–483.CrossRefGoogle ScholarPubMed
Eyl-Mazzega, M. A and Mathieu, C. (2019), ‘Strategic dimensions of the energy transition: Challenges and responses for France, Germany and the EU’, Etudes de l’IFRI, available at: https://bit.ly/45hdo9l.Google Scholar
Fernandez-Feijoo, B., Romero, S. and Ruiz, S. (2015), Multilevel Approach to Sustainability Report Assurance Decisions, 14 December, available at: https://doi.org/10.1111/auar.12104.CrossRefGoogle Scholar
Fernandez, R. (2021), ‘Community Renewable Energy Projects: The Future of the Sustainable Energy Transition?’, 56 The International Spectator, 87–104.CrossRefGoogle Scholar
Fiorino, D. J. (2018), Can Democracy Handle Climate Change (Cambridge, UK: Polity).Google Scholar
Ganguly, G., Setzer, J. and Heyvaert, V. (2018), ‘If at first you don’t succeed: Suing corporations for climate change’, 38(4) Oxford Journal of Legal Studies, 841–868.CrossRefGoogle Scholar
Gargantini, M. (2019), ‘Corporate governance, financial information and EU market abuse regulation’, in Busch, D., Ferrarini, G. and van Solinge, G. (eds.), Corporate Governance of Financial Institutions (Oxford: Oxford University Press), p. 291.Google Scholar
Gargantini, M. and Di Noia, C. (2020), ‘The approval of prospectus: Competent authorities, notification and sanctions’, in Busch, D., Ferrarini, G. and Franx, J. P. (eds.), Prospectus Regulation and Prospectus Liability (Oxford: Oxford University Press), p. 370.Google Scholar
Ghoogossian, C. (2015), ‘Evading the transparency tragedy: The legal enforcement of corporate sustainability reporting’, 11(2) Hastings Business Law School, 361–384.Google Scholar
Heddeman-Robinson, M. (2018), Enforcement of International Environmental Law: Challenges and Responses at the International Level (London: Routledge).CrossRefGoogle Scholar
Hill, J. (2020), Environmental, Social, and Governance Investing: A Balanced Analysis of the Theory and Practice of a Sustainable Portfolio (Amsterdam: Elsevier Science/Academic Press).Google Scholar
Hoerber, T. (2012), The Origins of Energy and Environmental Policy in Europe: The Beginnings of a European Environmental Conscience (London: Routledge).CrossRefGoogle Scholar
Hoerber, T., Kurze, K. and Kuenzer, J. (2021), ‘Towards ego-ecology? Populist environmental agendas and the sustainability transition in Europe’, 56 The International Spectator, 1–15.CrossRefGoogle Scholar
Kartadjumena, E. and Rodgers, W. (2019), ‘Executive compensation, sustainability, climate, environmental concerns, and company financial performance: Evidence from Indonesian commercial banks’, 11(6) Sustainability, 1673.CrossRefGoogle Scholar
Knodt, M. (2019), ‘Multilevel coordination in EU energy policy: A new type of “harder” soft governance?’, in Behnke, N., Broschek, J. and Sonnicksen, J. (eds.), Configurations, Dynamics, and Mechanisms of Multilevel Governance (London: Palgrave Macmillan), 173–192.CrossRefGoogle Scholar
Lasalla, C., Orero-Blat, M. and Ribeiro-Navarette, S. (2021), ‘The financial performance of listed companies in pursuit of the Sustainable Development Goals (SDG)’, 34(11) Economic Research, 427–449.Google Scholar
Lepore, L. and Pisano, S. (2022), Environmental Disclosure. Critical Issues and New Trends (London: Routledge).CrossRefGoogle Scholar
Macchiavello, E. and Siri, M. (2020), ‘Sustainable finance and fintech: Can technology contribute to achieving environmental goals. A preliminary assessment of “Green FinTech”’, European Banking Institute Working Papers 71.Google Scholar
Machiavello, E. and Siri, M. (2022), ‘Sustainable finance and fintech: Can technology contribute to achieving environmental goals? A preliminary assessment of “green fintech” and “sustainable digital finance”’, 19(1) European Company and Financial Law Review, 128–174.Google Scholar
Maltais, A. and Nykwist, B. (2020), ‘Understanding the role of green bonds in advancing sustainability’, 14(2) Journal of Sustainable Finance and Investment, 1–20.CrossRefGoogle Scholar
Manetti, G. (2011), ‘The quality of stakeholder engagement in sustainability reporting: Empirical evidence and critical points’, 18(2) Corporate Social Responsibility and Environmental Management, 110–122.CrossRefGoogle Scholar
McKinsey (2021), ‘Sustainability, organizing for sustainability success: Where, and how, leaders can start’, 10 August, available at: https://mck.co/3VFpV3i.Google Scholar
Millar, H., Bourgeois, E., Bernstein, S. and Hoffmann, M. (2021), ‘Self-reinforcing and self-undermining feedbacks in subnational climate policy implementation’, 30(5) Environmental Politics, 791–810.CrossRefGoogle Scholar
Narin Mathur, V., Price, A. D. F. and Austin, S. (2008), ‘Conceptualizing stakeholder engagement in the context of sustainability and its assessment’, 16(6) Construction Management and Economics, 601–609.CrossRefGoogle Scholar
O’Farrell, P. J. and Anderson, P. M. L. (2010), ‘Sustainable multifunctional landscapes: A review to implementation’, 2(1–2), Current Opinion in Environmental Sustainability, 59–65.CrossRefGoogle Scholar
Och, M. (2020), ‘Sustainable finance and the EU Taxonomy Regulation – Hype or hope?’, 05 KU Leuven Working Papers.CrossRefGoogle Scholar
Olah, J., Aburumman, N., Popp, J. et al. (2020), ‘Impact of Industry 4.0 on environmental sustainability’, 12(11) Sustainability, 4674.CrossRefGoogle Scholar
Pereira, L., Asrar, G. R., Bhargava, R. et al. (2021), ‘Grounding global environmental assessments through bottom-up futures based on local practices and perspectives’, 16 Sustainability Science, 1907–1922.CrossRefGoogle Scholar
Plater, Z. J. B. (2006), ‘Law, media and environmental policy: A fundamental linkage in sustainable democratic governance’, 33 B.C. Environmental Law Review, 511–521.Google Scholar
Prevost, D. and Alexovicova, I. (2019), ‘Mind the compliance gap: Managing trustworthy partnerships for sustainable development in the European Union’s free trade agreements’, 6(3) International Journal of Public Law and Policy, 236–269.CrossRefGoogle Scholar
Rishi, P. (2022), Managing Climate Change and Sustainability through Behavioural Transformation. Sustainable Development Goals Series (London: Palgrave Macmillan).Google Scholar
Roelfsema, M., van Soest, H. L., Harmsen, M. et al. (2020), ‘Taking stock of national climate policies to evaluate implementation of the Paris Agreement’, 11 Natural Communication, 2096.CrossRefGoogle ScholarPubMed
Rogers, D. T. (2022), Environmental Compliance Handbook: Sustainability and Future Environmental Regulations (London: Routledge).Google Scholar
Rossinioli, F., Stacchezzini, R. and Lai, A. (2021), ‘Financial analysts’ reaction to voluntary integrated reporting: Cross-sectional variation in institutional enforcement contexts’, 23(1) Journal of Applied Accounting Research, 29–54.CrossRefGoogle Scholar
Sachs, J. D., Woo, T. W., Yoshino, N. and Taghizadeh-Hesary, F. (2020), ‘Importance of green finance for achieving sustainable development’, in Sachs, J. D., Woo, W. T., Yoshino, N. and Takhizadeh-Hezary, F. (eds.), Handbook of Green Finance. Energy, Security and Sustainable Development, Goals and Energy Security (Singapore: Springer), 3–12.Google Scholar
Sarker, T., Taghizadeh-Hesary, F., Mortha, A. and Saha, A. (2020), ‘The role of fiscal incentives in promoting energy efficiency in the industrial sector: Case studies from Asia’, (08) Asian Development Bank Institute Working Paper 1172.CrossRefGoogle Scholar
Sheehy, B. (2019), ‘TNC code of conduct or CSR? A regulatory systems perspective’, in Rahim, M. M. (ed.), Code of Conduct on Transnational Corporations. Challanges and Opportunities (Cham: Springer), 45–62.CrossRefGoogle Scholar
Siri, M. and Zhu, S. (2019), ‘Will the EU Commission successfully integrate sustainability risks and factors in the Investor Protection Regime? A research agenda’, 11(22) Sustainability, 6292.CrossRefGoogle Scholar
Smith, J. L. (2008), ‘A critical appreciation of the “bottom-up” approach to sustainable water management: Embracing complexity rather than desirability’, 13(4) Local Environment, 353–366.Google Scholar
Soderholm, P. (2020), ‘The Green Economy Transition: The challenges of technological change for sustainability’, 3(6) Sustainable Earth, 1–11.CrossRefGoogle Scholar
Sugiawan, Y. and Manag, S. (2019), ‘Public acceptance of nuclear power plants in Indonesia: Portraying the role of a multilevel governance system’, 26 Energy Strategy Reviews, 100427.CrossRefGoogle Scholar
Taghizadeh-Hesary, F. and Yoshino, N. (2020), ‘Sustainable solutions for green financing and investment in renewable energy projects’, 14(4) Energies, 788.CrossRefGoogle Scholar
Tanaka, K. (2011), ‘Review of policies and measures for energy efficiency in industry sector’, 39(10) Energy Policy, 6532–6550.CrossRefGoogle Scholar
Vantagiatto, F. P. (2020), ‘Regulatory relationships across levels of multilevel governance systems: From collaboration to competition’, 33 Governance 173–189.CrossRefGoogle Scholar
Waas, T., Hugé, J., Block, T. et al. (2014), ‘Sustainability assessment and indicators: Tools in a decision-making strategy for sustainable development’, 6 Sustainability, 5512–5534.CrossRefGoogle Scholar
Weiss, F. and Kammel, A. J. (eds.) (2015), The Changing Landscape of Global Financial Governance and the Role of Soft Law (Leiden: Brill).Google Scholar
Wenta, J., McDonald, J. and McGee, J. S. (2019), ‘Enhancing resilience and justice in climate adaptation laws’, 8(1) Transnational Environmental Law, 89–118.CrossRefGoogle Scholar
World Economic Forum (2021), ‘The EU wants business to be sustainable. But it must empower companies to do that’, 26 October, https://bit.ly/3KYlSZL.Google Scholar
Ziolo, M., Filipiak, B. Z. and Tundys, B. (2021), Sustainability in Bank and Corporate Business Models, (London: Palgrave Macmillan).CrossRefGoogle Scholar

Save book to Kindle

To save this book to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×