Corporate Net Zero Pledges: A Triumph of Private Climate Regulation or More Greenwash?

Griffith Law Review (Forthcoming)

29 Pages Posted: 23 Feb 2023

See all articles by Anita Foerster

Anita Foerster

Monash University - Department of Business Law & Taxation

Michael Spencer

Monash Business School

Date Written: February 16, 2023

Abstract

Corporate pledges to achieve net zero greenhouse gas emissions in line with the international Paris Agreement on climate change are proliferating around the world, including in Australia. Regulatory drivers include corporate law obligations to identify, disclose and manage climate-related financial risks, as well as a complex web of rapidly developing private regulatory initiatives. Non-state actors such as institutional investors, industry bodies and civil society, are increasingly involved in developing best practice standards for climate risk disclosure and management, engaging with companies to drive their uptake, and in some cases, litigating to embed best practice expectations and hold companies accountable for their climate commitments and performance. Although underlying corporate law obligations are climate-neutral and focus on transparency and process, the associated private climate regulation is increasingly organised around substantive Paris-aligned standards. Drawing on an empirical study of large Australian listed companies, this article explores whether private climate regulation is helping to drive robust corporate climate commitments, target-setting and associated activities, which have the potential to deliver real-world emissions reductions.

Keywords: net zero, private climate regulation

JEL Classification: K20, K32

Suggested Citation

Foerster, Anita and Spencer, Michael, Corporate Net Zero Pledges: A Triumph of Private Climate Regulation or More Greenwash? (February 16, 2023). Griffith Law Review (Forthcoming), Available at SSRN: https://ssrn.com/abstract=4360634 or http://dx.doi.org/10.2139/ssrn.4360634

Anita Foerster (Contact Author)

Monash University - Department of Business Law & Taxation ( email )

Caulfield Campus
Sir John Monash Drive
Caulfield East, Victoria 3084
Australia

Michael Spencer

Monash Business School ( email )

Wellington Road
Caulfield, Victoria 3168
Australia

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