A test disclosure program offering limited safe harbor from litigation would help close the gap between what fossil fuel firms now share about their climate change risks and what investors need to know, according to a new study.
The current information gap poses high risks for the billions of dollars in assets traded each day, the authors said, and such a disclosure program would convey to investors better information about climate change impacts and make financial markets more efficient overall.
Paul Griffin, an accounting professor at the University of California, Davis, Graduate School of Management, and Amy Jaffe, an energy and sustainability expert with the Council on Foreign Relations, make their case in an article published in August in the Journal of Energy & Natural Resources Law.
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