How Mandatory Corporate CSR Disclosures Affect Investors

Investment in companies that engage in sustainable corporate practices is growing rapidly, with those companies receiving approximately $17 trillion from investors so far in the United States alone. As a result, the majority of public companies now voluntarily disclose environmental, social, and governance (ESG) information, touting plans to, for example, be “net zero” by a certain date. However, regulators generally allow companies to create socially responsible images without holding them accountable for the ESG goals they profess to have. This has led many stakeholders to accuse companies of “greenwashing:”  portraying a green image while not taking meaningful steps to achieve … Read more