Author ORCID Identifier
Available under a Creative Commons Attribution Non-Commercial Share Alike 4.0 International Licence
5.2 ECONOMICS AND BUSINESS
The EU Taxonomy seeks to identify those sustainable economic activities, thereby supporting climate change mitigation and adaptation. Recent legislation underpinning the EU Taxonomy, such as the Non-Financial Reporting Directive (NFRD) and the Sustainable Finance Disclosure Regulation (SFDR), highlight the urgency for academic contributions that might shed light on its operationalisation. At this embryonic stage in the Taxonomy’s lifecycle, there is potential for the academic community to contribute to understanding its implications. Hence, we undertake a thematic analysis of predominantly, but not exclusively, professional literature to prioritise potential empirical research or conceptualisations that might offer insights for finance and accounting professionals, regulators, policymakers, investors and businesses. Our literature search is limited to literature that makes explicit reference to the Taxonomy between 2018 and 2021. We find that little is understood on how investors or businesses intend to disclose against the taxonomy or on the challenges associated with disclosure. With sustainable finance emerging in Ireland, we propose an exploratory study of this sector’s readiness to operationalise the taxonomy and offer a conceptual framework based on co-evolution theory (Foxon, 2011) bounded by three initial conditions:  skills and capability and  access to ESG data and  regulatory alignment.
Kirby, D., Thompson, S. and MacMahon, C. (2021). Shifting the EU Taxonomy from Theory to Practice: A Review of the Literature highlighting Potential Academic Contributions to its Adoption, Implementation, and Impact. DOI: 10.21427/62jq-1r86