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The EU Taxonomy Effects on Swedish Sustainable funds

Sudberry, Bronson LU ; Fejes Lundborg, Fabian LU and Öberg, Markus LU (2022) IBUH19 20221
Department of Business Administration
Abstract
To facilitate a transition into a more sustainable economy, the EU Commission has introduced a new regulatory framework in order to redirect capital flows to sustainable projects and activities. The new EU taxonomy (EUT) aims to facilitate these investments into sustainable activities while mitigating the inherent risk of greenwashing within the financial industry. This study will investigate how the implementation of the EUT will affect the Swedish sustainable fund market. As a means for the study conducted, the authors adopted a qualitative approach while utilizing the thematic analysis method to analyze the findings. Semi-structured interviews were conducted as primary data sources, while secondary data was collected through a... (More)
To facilitate a transition into a more sustainable economy, the EU Commission has introduced a new regulatory framework in order to redirect capital flows to sustainable projects and activities. The new EU taxonomy (EUT) aims to facilitate these investments into sustainable activities while mitigating the inherent risk of greenwashing within the financial industry. This study will investigate how the implementation of the EUT will affect the Swedish sustainable fund market. As a means for the study conducted, the authors adopted a qualitative approach while utilizing the thematic analysis method to analyze the findings. Semi-structured interviews were conducted as primary data sources, while secondary data was collected through a literature review.

The interviews revealed several flaws within the framework regarding its ability to mitigate greenwashing. It was found that the EUT allowed for continued greenwashing within the market. Furthermore, the Article 8 fund classification was established as too broad and allowed funds to legitimize themselves with the EU commission. At the time of writing, the data available to make the classifications was insufficient to justify the claims. Therefore, it was found that the EUT would not likely not aid in mitigating greenwashing. (Less)
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author
Sudberry, Bronson LU ; Fejes Lundborg, Fabian LU and Öberg, Markus LU
supervisor
organization
course
IBUH19 20221
year
type
M2 - Bachelor Degree
subject
keywords
EU Taxonomy, Greenwashing, SFDR, Sustainable, Sustainable Investing, Sustainable Funds
language
English
id
9082412
date added to LUP
2022-08-01 12:56:51
date last changed
2022-08-01 12:56:51
@misc{9082412,
  abstract     = {{To facilitate a transition into a more sustainable economy, the EU Commission has introduced a new regulatory framework in order to redirect capital flows to sustainable projects and activities. The new EU taxonomy (EUT) aims to facilitate these investments into sustainable activities while mitigating the inherent risk of greenwashing within the financial industry. This study will investigate how the implementation of the EUT will affect the Swedish sustainable fund market. As a means for the study conducted, the authors adopted a qualitative approach while utilizing the thematic analysis method to analyze the findings. Semi-structured interviews were conducted as primary data sources, while secondary data was collected through a literature review.

The interviews revealed several flaws within the framework regarding its ability to mitigate greenwashing. It was found that the EUT allowed for continued greenwashing within the market. Furthermore, the Article 8 fund classification was established as too broad and allowed funds to legitimize themselves with the EU commission. At the time of writing, the data available to make the classifications was insufficient to justify the claims. Therefore, it was found that the EUT would not likely not aid in mitigating greenwashing.}},
  author       = {{Sudberry, Bronson and Fejes Lundborg, Fabian and Öberg, Markus}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The EU Taxonomy Effects on Swedish Sustainable funds}},
  year         = {{2022}},
}