Navigating sustainability reporting
: the EU taxonomy and stock returns in nordic markets

  • Rita Pinheiro Rodrigues de Jesus (Student)

Student thesis: Master's Thesis


Sustainability disclosure has long been a topic of discussion and disagreement. Without consistent information and guidelines, investors struggle to measure the impact of their investments. To address this issue, in 2020 the European Commission introduced the EU Taxonomy, aiming to provide investors with a clear and comparable framework of environmental sustainability across economic activities. With this thesis, I aim to study the impact of the EU Taxonomy on stock returns in Nordic markets, the world’s most sustainability-developed region. I find there to be an investment premium for firms with higher percentages of Taxonomy metrics. This premium is consistent with previous literature that sustainable investments yield higher returns. Examining market reaction through an event study, revealed initial hesitation from investors. The study indicates an investor preference for firms demonstrating improved Taxonomy performance, especially in the presence of sustainability rating discrepancies. Overall, my results suggest that Nordic firms with eligible economic activities, as per the EU Taxonomy, are benefitting from the implementation of the framework.
Date of Award25 Jan 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorZoe Venter (Supervisor)


  • EU taxonomy
  • Sustainable investments
  • Sustainability reporting
  • ESG
  • Nordic markets


  • Mestrado em Finanças

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