Environmental information disclosure by financial institutions is one of the key points in promoting green finance. Currently, China’s legislation mainly divides the environmental information disclosure by financial institutions based on the degree of compulsion and the content of the disclosure. However, this binary classification is not sufficient to effectively regulate the “greenwashing” behavior of financial market entities on a micro level, nor can it effectively expose environmental risks in the financial market on a macro level. Referring to foreign countries, the European Union has issued a series of legislation on the classification of environmental information disclosure by financial institutions, which can contribute useful experience to solving the above two problems. Therefore, China can build a “three-tiered” classification paradigm in line with national conditions, drawing on the EU experience in addition to the existing binary classification of environmental information disclosure by financial institutions: The first tier is to concretely classify environmental objectives; the second tier is to optimize the binary classification of “green financial products” and “non-green financial products” by adding a category of “financial products with green characteristics”; the third tier is to set different information disclosure rules for the three types of financial products in the second tier, forming a “differential mode of association” of disclosure rules among various financial products.
Optimization of the Typing System of Environmental Information Disclosure by Financial Institutions: EU Experience and China’s Approach
Journal of Shanghai University of Finance and Economics Vol. 25, Issue 03, pp. 138 - 152 (2023) DOI:10.16538/j.cnki.jsufe.2023.03.010
Cite this article
Wu Changhai, Wei Jie. Optimization of the Typing System of Environmental Information Disclosure by Financial Institutions: EU Experience and China’s Approach[J]. Journal of Shanghai University of Finance and Economics, 2023, 25(3): 138-152.
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