But along with marketplace rewards there has been increasing investor and regulatory scrutiny of whether ostensibly (or self-proclaimed) "sustainable" companies merit the designation. These challenges are well illustrated in the context of recent issues involving some well-known "sustainable" companies. Their experiences, therefore, provide important lessons for companies navigating increased demand for, and scrutiny of, climate-related disclosure. Regulators, investors, and even consumers are becoming increasingly wary of such exaggerated claims, and holding companies accountable.34 Ostensibly sustainable companies are not immune from challenges to their ESG bona fides. 24 A common argument against the SEC issuing updated climate-related disclosure guidance is that the disclosure requirements already cover ESG matters.

Source: New York Times December 03, 2021 18:17 UTC