The SEC’s new climate rules were a missed opportunity to accelerate corporate action
Investor efforts to evaluate carbon emissions, decarbonization plans, and climate risks through ESG (environmental, social, and governance) rating schemes have merely produced what some academics call “aggregate confusion.” And corporations have faced few penalties for failing to clearly disclose emissions or even meet their own standards. All of which is to say that a new set of SEC carbon accounting and reporting rules that largely replicate the problems with voluntary corporate action, by failing to require…