What If Banks Had to Disclose the Climate Impact of Their Investments?

May 23, 2022 EcoVadis ‏‏‎


The U.S. Securities and Exchange Commission recently proposed a new federal rule requiring all publicly traded companies to disclose climate risks and carbon emissions. This rule holds the potential to make huge progress by forcing banks to disclose which carbon-intensive projects they are financing. If passed, the rule will give bank investors greater transparency on the global climate emissions generated by their investment; once disclosed, banks will work to reduce their carbon exposure, which means new products and new terms to finance low carbon projects — globally. People should understand the transformative effects of disclosing the carbon impacts of bank financing, if only the SEC rule can pass.


Read the full article at: hbr.org

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About the Author

EcoVadis ‏‏‎

EcoVadis is the world’s most trusted provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. Backed by a powerful technology platform and a global team of domain experts, EcoVadis’ easy-to-use and actionable sustainability scorecards provide detailed insight into environmental, social and ethical risks across 200+ purchasing categories and 160+ countries.

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