Better information leads to better decisions – this is the idea behind a regulatory device known as “mandated disclosure.” Mandated disclosures are all around you, from calorie counts on fast food restaurant menus to conversations with doctors around informed consent.
But the biggest experiment yet in mandated disclosure may be an expected U.S. Securities and Exchange Commission proposal to extend these ideas to climate impacts facing U.S.-listed companies. The disclosure rule, expected to be proposed soon, would require publicly traded companies to release information to investors about their emissions and how they are managing risks related to climate change and future climate regulations.
