Decontesting an essentially contested concept: The standardization of sustainable finance

Abstract The aim of this article is to investigate how the standardization process and the public consultations carried out in the development of new sustainable finance standards and laws tend to shape the decontestation of practices in this field. The analysis of 255 comment letters submitted by various stakeholders in the context of these public consultations shows the dual role of standardization as a mechanism for both the decontestation and the (re)contestation of sustainable finance. This article makes important contributions to the emerging literature on the governance of sustainable finance through initiatives that are meant to improve the transparency of disclosures in this field and prevent investor misconduct. In light of Gallie's theory of essentially contested concepts, this article also contributes to the literature on the challenges of developing sustainability standards and the implications of adopting practices centered on concepts whose meanings and applications are the subject of endless disputes.