The role of tax issues on the ESG agenda is unclear

What is it about?

Many private investors want to invest their money in a responsible way. On the other hand, many institutional investors providing services to private investors are committed to sustainable and responsible investment (SRI), that is, along with normal investment criteria, they base their analysis and investment decisions on environmental, social, and governance (ESG) issues. It is quite obvious that taxation is then an important issue as well. However, according to the empirical findings of this study, based on interviews of institutional investors in Finland, the role and significance of tax issues in the ESG analysis, in practice, is unclear.

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Why is it important?

This study can be located at the interface of the legal and economic disciplines. From a legal research point of view, however, the question is not a matter of dogmatic legal research, but rather one of setting the boundaries of law. From an economic research point of view, this study could be located mainly in the accounting and financing realm, as it involves clarifying information use and the needs of institutional investors, and evaluating the links between CSR reporting and ESG analyses. The article is one of the first empirical research papers of this theme.

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