Sustainability disclosure has been a core pillar of sustainable finance regulation, especially in Europe. The theory that “what gets measured gets done” has encouraged regulators dramatically to expand sustainability disclosures.
But there’s an active debate in academia and in the worlds of business and policy about the role of sustainability disclosure in encouraging change towards more sustainable corporate behaviour: On the one hand there’s a view that transparency creates a level of focus and accountability that facilitates change. On the other there’s a view that it is a costly side-show or, worse, a distraction from real-world sustainability action.
In this project we are conducting a research study to explore the role of disclosure in the context of UK mandatory climate disclosures. Through a mixture of academic literature review and stakeholder interviews the project will seek to:
- Assess how companies and investors respond to UK mandatory climate disclosures, the extent to which they change their actions as a result of such disclosures, and why.
- Evaluate the costs and benefits of UK mandatory disclosures and seek to draw lessons about the disclosure approaches that are most effective and the appropriate future focus for regulators.
The research team has interviewed Board Chairs, Non-Executive Directors, and executives in finance, investor relations, corporate governance, and sustainability from various companies to gain insight into how mandatory disclosures effect (or not) what companies do.
Having completed the interview process, the research team is currently consolidating the findings into a written report and academic article.
For articles by Dr Simon Witney relating to this project please see his op-ed in Sustainable Views and his Special Paper in the ISF publication series.
This project is funded by the Brown-Gonzalez Charity and the Global School of Sustainability.
LSE Research Team: Dr Simon Witney, Dr Richard Perkins, Hilary Eastman, Professor Tom Gosling.
For further information please contact Dr Simon Witney at s.r.witney@lse.ac.uk.
