| dc.description.abstract | The EU Taxonomy for sustainable activities is a classification system for sustainable activities established by the EU in 2020 as part of their sustainable finance strategy. The aim is to direct capital towards green investments and activities essential for achieving the environmental targets in the European Green Deal and the Paris Agreement. This is done by establishing certain sustainability criteria economic activities must align to be classified as sustainable. The scope of this study is the economic activity of renovating existing buildings.
This thesis investigates methodologies and strategies that property developers can employ to align renovation projects with the EU Taxonomy. The scope of the study is limited to the Norwegian office market. To address the problem statement, a method triangulation was applied. The research methodology encompassed a literature review, qualitative interviews, and the application of a theoretical framework.
A total of 14 in-depth interviews were conducted: eight property developers, three interest organizations, two financial advisors and a legal advisor. The theoretical frameworks of institutional theory (North, 1990) and the complimentary theory of institutional isomorphism (DiMaggio and Powell, 1983) were employed to understand organizational responses to the EU Taxonomy.
The study resulted in four key findings: (1) There is an apparent lack of clear implementation strategies for the EU Taxonomy in renovation projects among prominent Norwegian property developers. The study exposed a disparity between a minority who had adopted a proactive approach, and a majority who maintained a defensive stance. This suggests a lack of enforcement power in the EU Taxonomy for renovation (2) The incentives for aligning the taxonomy for renovation do not necessary justify the required investment, raising questions about the economic benefits of compliance (3) Early preparation for alignment and the use of available tools and reporting services are effective strategies for facilitating alignment with the taxonomy criteria (4) The behaviour of property developers in response to the EU Taxonomy can be explained through the lenses of institutional theory and institutional isomorphism. These frameworks contributes to an understanding of how industry standards and regulatory enforcement shape organizational behaviour. | |
