Taxonomy Reports of European Banks: Empirical Insights on Quality, Heterogeneity, and Market Transparency

Abstract The green asset ratio is designed to serve as a key indicator for comparing and evaluating the sustainability performance of European banks. However, we find that the GAR does not yet serve this purpose. Based on a sample of 97 ECB-supervised significant institutions, we find empirical evidence for multiple heterogeneity issues that hamper comparability of taxonomy reports and market transparency.