Uncovering lobbying strategies in sustainable finance disclosure regulations using machine learning.

PURPOSE: We analyse lobbying behaviour by using Machine Learning approaches. In the context of Sustainable Finance Disclosure Regulation (SFDR), we gain detailed insights, assign these to existing strategies, and measure how strongly which participant influences the regulation. STUDY DESIGN/METHODOLOGY/APPROACH: We use tri-gram analysis, sentiment analysis, and similarity analysis as methods to obtain insights into the political commentary process of European Supervisory Authorities (ESAs) drafts dealing with SFDR. FINDINGS: Our metadata helps to identify stakeholders and lobbying strategies. We found that the most negative comments came from the regulated, who argued strongly subjectively in a very objective environment of ESG disclosure. We also identified typical lobbying strategies based on arguments, persuasion, and classic cost-benefit considerations. ORIGINALITY/VALUE: We generate emotion values and synthesise detailed argument differences and show that modern algorithms can contribute to the identification of interest groups and lobbying strategies. Furthermore, we generate similarity values of arguments that can be taken into account in the analysis of the success of a lobbying strategy.

The environmental impact of cryptocurrencies using proof of work and proof of stake consensus algorithms: A systematic review.

A systematic literature review is conducted to investigate the environmental impact of Proof of Work (PoW) and Proof of Stake (PoS) cryptocurrencies. Due to the focus of recent research on Bitcoin, an inductive approach has been applied to analyze and cluster the findings of PoW cryptocurrencies into seven aspects that effect the environmental impact of cryptocurrencies: resources, energy consumption, carbon footprint, environmental-related social and economic aspects, policy regulation and subsidization, and electronic waste. Subsequently, interconnections and rebound effects are presented and discussed by synthesizing results from each of the seven aspects into one scenario analysis inspired by the crackdown on cryptocurrency miners in China, 2021. Furthermore, it was observed that proposed policy regulation in literature is strongly focusing on miners. As the profitability of miners globally depends on the price of the PoW cryptocurrency, researchers and policymakers are advised to focus more on investors and third-party services such as regulated exchanges. Thus, identifying and implementing policies that demotivate investment in PoW cryptocurrencies could reduce their prices and the incentive to mine. Ultimately, it was assessed that PoW cryptocurrencies, especially Bitcoin, are historically associated with an ever-increasing environmental impact. In contrary, researchers address PoS as a sustainable alternative that poses a solution to the environmental issues related to PoW.

Which internal corporate governance mechanisms drive corporate sustainability?

DESIGN: /methodology/approach: This study conducts a systematic review to analyze the relationship between corporate governance and corporate sustainability. PURPOSE: As enterprises are directed through corporate governance, the integration of corporate sustainability is a necessary step to secure long-term firm success and react to recent social and environmental developments. Against this background, this paper investigates the following research question: Which internal corporate governance mechanisms drive corporate sustainability? FINDINGS: The results gained from a sample of 56 articles show findings for different internal corporate governance mechanisms such as board diversity, board independence, the board size, the board-level sustainability committee, the role of the CEO, ownership concentration, and the disclosure and transparency practice, which play a role in guiding a firm in a sustainable direction and achieving sustainability integration. The role of board diversity is discussed the most throughout the literature. PRACTICAL IMPLICATIONS: The results suggest that boards should be designed diversely and independently while having an appropriate size to work effectively. Furthermore, the sustainability strategies of CEOs should be motivated by incentives. Nevertheless, there has to be a consideration of the interrelations of the investigated mechanisms. SOCIAL IMPLICATIONS: The results suggest that being more transparent and showing non-financial performance at least compliant to sustainability regulations increases the orientation on stakeholder interests and long-term focus. ORIGINALITY/VALUE: The paper systemizes the research field related to internal corporate governance mechanisms and corporate sustainability to give an overview of the current research landscape and discuss the identified drivers. Overall, this research comprehensively sketches of what is known and unknown about the questions addressed in the systematic review.