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Applying Responsible Ownership to Advance SDGs and the ESG Framework, Resulting in the Issuance of Green Bonds

Author

Listed:
  • Gudrun Erla Jonsdottir

    (School of Business, University of Iceland, 102 Reykjavík, Iceland)

  • Throstur Olaf Sigurjonsson

    (Faculty of Business Administration, University of Iceland, 102 Reykjavik, Iceland
    Department of Accounting, Copenhagen Business School, 2000 Frederiksberg, Denmark)

  • Ahmad Rahnema Alavi

    (IESE Business School, Avenida Pearson, 21, 08034 Barcelona, Spain)

  • Jordan Mitchell

    (Independent Researcher, Toronto, ON M4T 1Z2, Canada)

Abstract

This study aimed to contribute to the strand of literature encompassing governance, sustainability, and stakeholder theory by addressing an inchoate element of responsible ownership: collective action by different stakeholders. Our study’s originality rests on the introduction of an ownership strategy as a governance mechanism for collective action and responsible ownership in order to implement the United Nations Sustainable Development Goals (SDGs) and an environmental, social, and governance (ESG) framework. Using a twofold empirical methodology—studying of archival data and qualitative case work—we provide empirical evidence from a case study of a Nordic energy company showing that applying an ownership strategy helped to strengthen the approach to SDGs and ESG while leading to positive benefits: in this case, the issuance of green bonds. Our theoretical contribution is the addressing of a gap in the literature exploring how an ownership strategy can be a uniting point for collective action, based on the hypothesis that an ownership strategy provides an important reinforcement of a “virtuous cycle”. Policymakers who are interested in promoting long-term commitment of different stakeholders with a focus on sustainability and improved agency should encourage the formulation of an ownership strategy that explains the owners’ commitment to the environment, social causes, and/or governance guidelines. Therein lies the practical contribution of this work. In this study, we found that an ownership strategy with these elements helped to strengthen the firm’s commitment to SDGs and ESG.

Suggested Citation

  • Gudrun Erla Jonsdottir & Throstur Olaf Sigurjonsson & Ahmad Rahnema Alavi & Jordan Mitchell, 2021. "Applying Responsible Ownership to Advance SDGs and the ESG Framework, Resulting in the Issuance of Green Bonds," Sustainability, MDPI, vol. 13(13), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:13:p:7331-:d:585777
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    References listed on IDEAS

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    2. Zoltán Csedő & József Magyari & Máté Zavarkó, 2022. "Dynamic Corporate Governance, Innovation, and Sustainability: Post-COVID Period," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    3. Isabel‐María García‐Sánchez & Cristina Aibar‐Guzmán & Miriam Núñez‐Torrado & Beatriz Aibar‐Guzmán, 2022. "Are institutional investors “in love” with the sustainable development goals? Understanding the idyll in the case of governments and pension funds," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 1099-1116, October.
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    5. Hoang, Thi Hong Van & Pham, Linh & Nguyen, Thanh Thi Phuong, 2023. "Does country sustainability improve firm ESG reporting transparency? The moderating role of firm industry and CSR engagement," Economic Modelling, Elsevier, vol. 125(C).
    6. María Garrido-Ruso & Beatriz Aibar-Guzmán & Albertina Paula Monteiro, 2022. "Businesses’ Role in the Fulfillment of the 2030 Agenda: A Bibliometric Analysis," Sustainability, MDPI, vol. 14(14), pages 1-35, July.
    7. Ludmila Aleksandrovna Kormishkina & Evgenii Danilovich Kormishkin & Oksana Sergeevna Sausheva & Dmitrii Aleksandrovich Koloskov, 2021. "Economic Incentives for Environmental Investment in Modern Russia," Sustainability, MDPI, vol. 13(21), pages 1-12, October.

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