Mandatory corporate carbon disclosures and the path to net zero

Bolton, Patrick ; Reichelstein, Stefan ; Kacperczyk, Marcin T. ; Leuz, Christian ; Ormazabal, Gaizka ; Schoenmaker, Dirk

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URL:	https://mbrjournal.com/2022/01/31/mandatory-corpor...
Weitere URL:	https://mbrjournal.com/
URN:	urn:nbn:de:bsz:180-madoc-608597
Dokumenttyp:	Zeitschriftenartikel
Erscheinungsjahr:	2021
Titel einer Zeitschrift oder einer Reihe:	Management and Business Review : MBR
Band/Volume:	2021
Heft/Issue:	Digital Article, Fall 2021
Ort der Veröffentlichung:	Columbia, USA
Verlag:	Institute of Knowledge and Technology Management
ISSN:	2694-104X, 2694-1058
Sprache der Veröffentlichung:	Englisch
Einrichtung:	Fakultät für Betriebswirtschaftslehre > Stiftungsprofessur für ABWL (Reichelstein 2018-)
Fachgebiet:	330 Wirtschaft
Abstract:	Despite widespread concern about global climate change, the overwhelming majority of publicly listed companies around the world still do not disclose their carbon emissions. Even fewer privately held companies do. Making carbon disclosures mandatory for both public and private companies is an elementary but essential step in the drive towards a net zero carbon economy. Firms should be required to report their annual direct greenhouse gas emissions, called Scope 1 emissions, as measured in CO2 equivalents, with possible deductions for high quality offsets. Going forward, firms should also be required to report the history of their annual carbon emissions. Such a disclosure mandate is simple, transparent, and readily implemented. It will aid policy makers and asset managers alike in managing the risks of carbon transition and accelerate the pace of future carbon emission reductions.