EU Sustainability Research Articles

EU International Business Development and Sustainability

EU International Business Development and Sustainability

Toward a novel Sustainability Transparency Index for improved governance in agri-food value chains: A comparative study of Finnish and Ukrainian companies

The paper addresses ESG-based disclosure and transparency measurement in the context of a comparative analysis of Finnish and Ukrainian agri-food businesses based on the Sustainability Transparency Index (STI) and Sustainable Development Goals (SDG). Based on the normalization method, SDG-related text mining, and qualitative text analytics, the sustainability information of the largest agri-food companies was traced. Among GRI, ISSB, and ESRS disclosure standards, only GRI 13 has clearly established SDG alignment with most material stakeholders’ requests. The results of the study give a snapshot of sustainability transparency in the agri-food business in 2023, where the indices of Finnish companies are higher than those of Ukrainian ones, with clear SDG 12, waste and water management priority compared to SDG 2 and sustainable agriculture in Ukraine. Regulatory recommendations based on a comparative analysis of sustainability disclosure in both countries include better alignment with EU (Finnish) benchmarks, reporting and assurance practices for Ukrainian companies, and the incorporation of recent EU sustainability disclosure approaches for Finnish companies. Acknowledgment Inna Makarenko gratefully acknowledges the support of the Academy of Finland (Decision 353888).  

Driving EU sustainability: Promoting the circular economy through municipal waste efficiency

The need to balance ecosystems and ensure the well-being of all people underlines the urgency of closing product life cycles. In recent years, the circular economy (CE) has emerged as one of the most relevant factors in achieving the Sustainable Development Goals. This paper presents a systematic literature review (SLR) of waste management efficiency at the European level. Furthermore, it presents a standard data envelopment analysis (DEA) of 27 European countries over the period 2017–2021, focused on municipal waste. Three models (i.e., economic, technical, sustainable) are proposed to optimise the rates of municipal waste recycling and circular material use.The SLR, based on an initial set of 216 articles that was subsequently refined through double screening to 31, highlights the strategic role of the waste management, recycling and municipal solid waste triangle. The results of the DEA indicate stronger synergy between technical and sustainability dimensions than between economic and sustainability components. Moreover, they highlight fragmented performance in Europe, with distinct clusters of countries emerging as top performers in each of the three models, and the Netherlands, Slovenia, France, Italy, Germany and Sweden demonstrating superior performance for both CE outcomes and sustainable performance. Overall, the results emphasise the strategic role played by technology in facilitating an efficient circular model of municipal waste management to minimise landfilling and other environmentally detrimental practices, thereby stimulating the development of sustainable communities for optimised waste management, in line with broader sustainability objectives.

Navigating Problematic Bauhaus Inheritances: Critiques, Implications, and Questions from the Bauhaus of the Seas NEB Lighthouse

Abstract In 2020, Europe announced the New European Bauhaus (NEB). While the initiative intends to achieve EU sustainability goals, framing it under the name of the Bauhaus brings various challenges and issues to the fore. In this article, we analyze the critiques of the original Bauhaus and the NEB to understand the challenges that the NEB lighthouse project Bauhaus of the Seas Sails (BoSS) inherits by adhering to the Bauhaus vision and name. We unveil the problematic dynamics of Eurocentric modernity's myths of universalism and better living through technology and on the Bauhaus's and NEB's position in global power structures. Instead of assuming a tabula rasa approach and replicating problematic structures unknowingly, we bring these three aspects to BoSS to find questions as orientation points to help steer away from problematic aspects inherited by reanimating the Bauhaus name and its legacy.

Enhancement of the market attractiveness and success of startups on the circular economy and sustainability principles

Purpose. The purpose of this study is to develop the methodology and the framework for assessing the level of environmental friendliness of startups in the agricultural sector and their compliance with the circular economy and sustainable development principles using T. L. Saaty’s analytic hierarchy process (AHP) to enhance their market attractiveness and success. Methodology / approach. The author’s methodology was created based on the AHP approach which is a comprehensive decision-making framework used to divide complex problems into a clear hierarchical structure. This approach enables the evaluation and comparison of multiple criteria facilitating informed decision-making. Calculations have been made in the RStudio. Results. The authors’ methodology and the framework for assessing the startups’ environmental friendliness and compliance with the circular economy and sustainability principles were created. The unique program was developed and executed in the RStudio using R programming language. The created methodology is based on the hierarchical criteria system consisting of three main criteria – “Compliance with the EU environmental standards and sustainability principles promotion”, “Compliance of the startups’ business model to the circular economy and sustainability principles”, and “Resource usage rationality” with the corresponding sub-criteria. It was determined that the first criterion has the highest impact on the startup eco-friendliness with a weight of 49.2 %, the second one has a weight of 28.7 %, and the third one – 22.1 %. The system of requirements for the AHP experts was also developed. Originality / scientific novelty. It was substantiated that the application of the original authors’ methodology and program enhance the startups’ market attractiveness and success by strengthening their brand image. The proposed solution facilitates the implementation of the circular economy and sustainability principles for innovative businesses, leading to improvements in environmental protection and waste management. Practical value / implications. The methodology has been tested on the example of the authors’ bioenergy startup for producing eco-friendly biofuels using agricultural and food industry wastes and minimising the usage of toxic substances. Based on the experts’ opinion and using the authors’ unique program it was calculated that the startup complies with the circular economy and sustainability principles and has an eco-friendly brand image with a 78.6 % probability.

The EU Taxonomy, sustainability reporting and financial institutions: understanding the elements driving regulatory uncertainty

ABSTRACT The EU Taxonomy Regulation relies on sustainability reporting to channel financial resources to sustainable activities. Financial institutions are key actors in the Taxonomy setting because they operate as financial intermediaries and have a dual role as both users and preparers of sustainability information. This paper investigates the perceived uncertainty that characterizes the sustainability reporting regulatory environment of a particular type of financial institution, banks, to identify the elements that generate that perception. Drawing on literature on regulatory uncertainty, this paper conducts a case study of the Spanish banking industry informed by interviews and complemented by other data sources. The analysis unveils two significant elements driving regulatory uncertainty: the Taxonomy’s lack of clarity regarding the operationalization of its measures and rules and the timeline and oversight of its implementation. The study also documents that the Taxonomy induces uncertainty in the non-regulatory environment due to its unpredictable impact on banks’ reputation and market competition, as well as to the changes it provokes in banks’ internal structures and processes to address regulatory requirements. As the perception of regulatory uncertainty represents an impediment to compliance, understanding the elements giving rise to it can help to mitigate such perception and facilitate the fulfillment of regulatory demands. This investigation offers implications for policy and practice to facilitate the production of the sustainability information banks must disclose according to the EU Taxonomy, particularly the green asset ratio.

Reporting cybersecurity to stakeholders: A review of CSRD and the EU cyber legal framework

The purpose of this article is to explain, through a doctrinal review of the EU sustainability and cybersecurity legal framework, how the cybersecurity obligations contribute to the cybersecurity content and quality of the sustainability reporting. Previous studies are limited to voluntary cybersecurity disclosure in annual reports because they date back to before the adoption of CSRD. The CSRD harmonized sustainability reporting in the EU and introduced the ESRS, the standards for sustainability disclosure. As stated in the ESRS S4, the sustainability reporting should now address how the company manages the risks linked to data usage and data collection. Therefore, cybersecurity measures must be included in the sustainability report. This information can be used by stakeholders to assess the risk appetite and the potential long-term profitability of the company. The cybersecurity measures adopted by companies must comply with the cybersecurity obligations of the EU legal framework. While it is out of the scope of these cybersecurity obligations to inform ex ante the stakeholders of a company of how the company is managing cyber risks, these same obligations can improve the quality and content of the sustainability discourse.

EU Sustainability Quest: Possibilities of Consumer Sales

This paper analyses principal incoherence left in EU rules applicable to consumer sales against the background of the European Commission’s sustainability quest, supposedly influencing every area of the Union’s future life, and argues for a possible need for changes in contemporary consumer law in order to achieve a greater environmental good. It covers three key aspects where the Consumer Sales Directive might have done a better job in addressing environmental worries (i. e. legal guarantee term, assessment of remedies, and commercial guarantees), and states that these aspects were not modified to benefit the environment. The article then covers a deeper problem of conflicting aims that cannot be simultaneously upheld (i. e. fostering and curbing consumption at the same time), and challenges that in order to address environmental problems serious reconsiderations of consumer protection might be necessary.

Twenty-first century customs fraud: how to effectively enforce EU sustainability requirements on imports

Abstract Countries increasingly adopt measures to make their economy more sustainable. These measures range from pricing carbon and protecting forests to promoting renewable energy and banning forced labour. This article examines how countries can effectively enforce such sustainability requirements on imports. Based on two case studies—the EU Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR)—and other developments in EU customs law and practice, this article shows that customs inspection of elements that cannot be physically detected in the imported product as such is neither unique nor new. Similar challenges arise when dealing with massive inflows of small e-commerce consignments or having to check the origin or value of products. Indeed, for customs enforcement more generally, the trend is one away from physical inspection of products on a transaction basis at the point of entry, toward verification and control of firms before and especially after release of the goods. To implement this ‘product-to-firm’ shift, four back-up features are, however, crucial, focusing on data, penalties/circumvention, cooperation, and resources.

Evaluating Corporate Accountability for Human Rights Violations: The (Uncertain) Efficacy of Administrative Sanctions under the EU Sustainability Due Diligence Directive

Evaluating Corporate Accountability for Human Rights Violations: The (Uncertain) Efficacy of Administrative Sanctions under the EU Sustainability Due Diligence Directive

Commentary: Practical Customs Aspects of CBAM

EU sustainability requirements, including the latest known as the Carbon Border Adjustment Mechanism (CBAM), take the practical form of data requirements passed from the EU importer to the manufacturer of goods in a non-EU country. The new laws raise many questions, the first being who in the company (both importing and manufacturing) is responsible for compliance. In the case of CBAM, Customs play an important role, so eyes turn first to the customs specialist. Let's take a look at whether this is really the right position to be in charge of CBAM compliance. EU, Carbon Border Adjustment Mechanism (CBAM), customs

Electric Vehicles from an Economic Point of View

Abstract Research purpose. In recent years, the importance of moving from a linear economy to a circular economy in every area and sector of the economy has been discussed more than ever before. This includes discussions on a net zero energy system as the basis for a fully decarbonised electricity sector. The increase in demand for electricity and the push for net zero emissions are leading to a focus on using electric vehicles to meet the EU's sustainability targets. The European transport sector is responsible for a significant part of the European Union's total greenhouse gas emissions. The main aim is to evaluate the impacts of the automotive industry from an economic point of view because the increase in sales of electric cars can lead, among other things, to the mitigation of environmental problems. Design / Methodology / Approach. Electric cars and biofuel cars are the two most discussed solutions in the transport sector. As EVs are sustainable to the extent that their energy sources are sustainable, the main aim of this research paper is to investigate the impacts of the chosen electric vehicle types from an economic point of view, especially the sales of electric vehicles in the time period of 2010-2021. Battery electric vehicles and plug-in hybrid vehicles' sales situation will be analysed in Europe and globally. The assumptions and hypotheses were set and verified through regression and correlation analysis. Findings. The research results have confirmed our assumptions that the number of vehicles sold in Europe and worldwide is increasing with time. During the time period under consideration, electric car sales increased worldwide. 6,600,000 battery electric vehicles and plug-in hybrid vehicles were supplied in total in 2021, representing a 45% increase from the previous year. The most significant growth in car sales in Slovakia was in 2021, but only one-tenth of one per cent were electric vehicles. Originality / Value / Practical implications. A gradual shift of the main interest from automakers to electric vehicles is seen. At the same time, there are other questions connected to electric vehicles that need to be addressed and analysed, such as their high price, charging options and infrastructure and, nowadays, the electricity price.

Moving Forward with Tax Sustainability Reporting in the EU – A Quantitative Descriptive Analysis

This article examines the status quo of tax disclosure in the context of sustainability reporting and proposes recommendations for the creation of uniform EU Sustainability Reporting Standards. The analysis is based on the 2020 and 2021 sustainability reports of 112 firms listed in the three largest economies of the European Union: France, Germany and Italy. The authors have developed a multidimensional scoring model – the Tax Transparency Index – that considers both the extent and the manner of presentation of the textual information. The results show that the content coverage falls short of the requirements of the globally most widely applied tax sustainability reporting standard, GRI 207. Furthermore, it shows that tax sustainability reporting appears to be highly fragmented, making it difficult for users to find relevant information. Two implications emerge for the envisaged development of EU Sustainability Reporting Standards. First, a standardization of the materiality assessment and a limitation of the “comply-or-explain” principle with regard to taxes is needed. Second, the authors recommend disclosure of tax sustainability information within a single document and therefore welcome the recent mandate of the EU CSR Directive.

Europe proposes green hydrogen definition

The European Commission’s proposed definition and rules for green hydrogen have been met with criticism from both industry and environmentalists. The aim of the rules is to encourage developers to build green hydrogen capacity while ensuring that only facilities powered by renewable electricity can count toward EU sustainability targets. The proposal defines green hydrogen as coming from water electrolysis powered by newly built equipment for generating renewable electricity. An electrolysis plant with an on-site solar farm would count, but a grid-powered plant would have to buy renewable electricity from a nearby source built no more than 36 months before the hydrogen plant came on line. It would also need to match volumes of hydrogen with corresponding renewable wattage on an hour-by-hour basis. The industry group Hydrogen Europe welcomed the proposal but criticized the requirement that the renewable electricity be generated nearby at the same time as the hydrogen. “These strict

Sustainability assessment of alternative waste-to-energy technologies for the management of sewage sludge

The management of sewage sludge still represents a challenge in the EU sustainability plan for biowaste. Although there are consolidated alternatives for the valorization of sewage sludge (incineration, pyrolysis and gasification), technical issues related to heavy metals and other pollutants are not sufficiently understood considering the whole waste-to-energy process. In addition, societal-economic and environmental aspects are usually not included in the evaluation of these conversion technologies. In this study, we propose an integrated assessment from a sustainability perspective to evaluate the valorization of sewage sludge by thermal conversion, comparing different alternatives based on existing Waste-to-energy (WtE) technologies. The results provide an insightful vision on the challenges to manage the sewage sludge disposal and to transform the obtained waste into new raw materials with added value. In addition, the evaluation of the WtE alternatives shows that they face important challenges preventing their application, being the gasification the best performing technology according to the sustainability assessment. Finally, a decentralized scheme based on sewage sludge gasification is further evaluated using real data from wastewater treatment plants in Andalusia.

The EU Sustainability Taxonomy: Will it Affect Small and Medium-sized Enterprises?

The EU Sustainability Taxonomy: Will it Affect Small and Medium-sized Enterprises?

EU Competition Law and Sustainability

EU Competition Law and Sustainability

Biofuels production from orange juice industrial waste within a circular economy vision

The orange juice industry is a dynamic food industrial sector that produces large amounts of waste given that more than half of the processed fruit ends up as waste. In order to reduce its environmental impact, it is usually used as animal feedstuff, either as it is (fresh orange waste) or dehydrated (pressed orange waste) or as silage. In an effort to meet the EU circularity goals, these three possible raw materials were assessed as feedstocks for biogas and/or bioethanol production. Fresh orange waste could provide the highest energy yield via anaerobic digestion (32 m3 biogas/tn orange processed), while the pressed orange waste and silage resulted in the production of 20 and 11 m3 biogas/tn orange processed respectively. The coupling of enzymatic hydrolysis (with 50 μL CellicCTec2/g cellulose) and ethanolic fermentation (with 2 % w/w Saccharomyces cerevisiae) with biogas production for fresh orange waste resulted in the production of 336 MJ/tn orange processed. Conclusively, orange juice industry could meet the EU sustainability goals via valorisation of its waste.

Corporate Non-Financial Reporting in the UK: Diversions from the EU Sustainability Reporting Framework

In late 2019, the European Union presented the EU Green Deal, which targets climate neutrality by 2050. Under the EU Green Deal’s Corporate Sustainability Reporting Directive (CSRD), a clear sustainability reporting and assurance framework was proposed as a significant aspect of the EU Sustainable Finance Package in 2021. However, because of its exit from the EU in 2020, the UK will cease to adopt EU legislations and will have to produce its own laws to achieve climate neutrality. Against this backdrop, the purpose of this paper is to explore how best to improve the non-financial reporting mechanism in the UK, in order to assist the UK in transitioning to a more sustainable economy. This paper investigates the unique challenges for non-financial reporting in the UK caused by Brexit, and the significance and effectiveness of risk-based regulation approach in the UK. The paper proposes a ‘really responsive’ industry-based non-financial reporting framework for the UK to address its unique challenges.

EU Sustainability Reporting Standards

EU Sustainability Reporting Standards