Mandatory Corporate Carbon Disclosures and the Path to Net Zero
21 Pages Posted: 25 Oct 2021 Last revised: 26 Oct 2021
Date Written: October 4, 2021
The overwhelming majority of publicly listed companies around the world still does not disclose their carbon emissions, and even fewer privately held companies do so. We argue that mandatory carbon disclosures for public and private companies can make an elementary but essential contribution to the global drive towards a net zero economy. They deliver much of what policy makers and asset managers need to manage carbon transition risk, and perhaps more importantly, are likely to accelerate the pace of future carbon emission reductions. For this, it is important that mandatory carbon disclosures are kept simple and straightforward to interpret, and that such a mandate be enforced.
Keywords: Climate change, Nonfinancial information, ESG reporting, sustainability, Reporting mandates, Carbon emissions
JEL Classification: G11, G32, M41, M48, K22, Q38, Q48, Q54
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