Home Economy How could the US incentivize investors to decarbonize the economy?

How could the US incentivize investors to decarbonize the economy?

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The U.S. Securities and Exchange Commission (SEC) last month proposed requiring publicly traded companies to disclose their climate-related risks and greenhouse gas emissions. If the proposal is enacted, companies might have to hire third-party auditors to verify emissions not just from their own operations, but also from supply chains and customers’ end use.

The SEC wants this transparency and consistency in reporting so that investors might make risk-informed decisions. The information would allow investors to direct capital away from products and services that are carbon-intensive or at risk of damage from climate change impacts. While there are plenty of objections, if this goes through it might over time shift billions toward firms that are helping reduce climate change or making moves toward becoming net-zero emitters themselves. Mandatory disclosures also could reduce greenwashing and opportunistic marketing.

The SEC proposal comes on…

Click here for full article…thehill.com