Corporate disclosure, ESG and green fintech in the energy industry

Abstract

Abstract This article examines the crucial role of non-financial disclosure in achieving environmental sustainability across economies and legal systems, focusing on the Corporate Sustainability Reporting Directive (CSRD). It scrutinizes the efficacy of current reporting regimes and their capacity to capture the distinct nature of company activities. The study underscores the importance of flexibility tools in customizing disclosure obligations to individual companies, striking a balance between competing informational interests and adhering to principles of reasonableness and proportionality. It highlights the double materiality criteria and the ‘comply or explain’ mechanism as pivotal in tailoring reporting duties. Moreover, the article argues for better integration of fintech and greentech to modernize the disclosure obligation, making the disclosed information digitally tagged and machine-readable. It also investigates the potential for technology to ease the existing negative or preventive approach characterizing enforcement mechanisms, possibly setting the incentive for information disclosure. The conclusions encompass policy recommendations aiming to harness the opportunities offered by technology in the context of CSRD, aligning the reporting duties with contemporary needs.