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Planet Now
Blog on Effective Environmental Communication
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As some companies pollute and greenwash their efforts to slow climate change, people who care about the future of the planet must hold companies accountable. In March 2022, the U.S. Securities and Exchange Commission proposed rules that would require public companies to share certain information about their climate change responses and greenhouse gas emissions. Some of this information includes how companies are managing risks related to climate change and possible financial impacts of climate-related natural disasters and changes in energy availability.
Many environmental organizations have advocated for implementation of the rules. A letter from 77 organizations, mainly environmental organizations like the Sierra Club, explained that many companies do not voluntarily disclose enough information about their efforts to respond to climate change in order to hold them accountable. Companies may say they are committed to reducing their contributions to climate change but not share specific plans, progress, or emissions metrics. Requiring this information to be public would pressure companies to follow through on commitments to help the environment. More transparency about climate risks would also help investors make informed decisions. However, the First Amendment may limit the government’s ability to compel speech about climate change. Scholars have shared varied views on whether the SEC has the power to require climate disclosures. Some scholars, like Sean Griffith and Justin Hicks, have said that making rules about climate change and greenhouse gas emissions is too far outside the scope of the SEC’s role to protect investors. On the other hand, scholars such as Robert Post believe that the First Amendment should not be used to prevent commercial regulation and that the First Amendment would not prevent the government from requiring disclosure of facts that are important for making investment decisions. The SEC has set this April to finalize its climate disclosure rules. If the SEC does not implement its rules, environmentalists will have to find new ways to further hold companies accountable for climate change. This case may also set a precedent regarding compelled speech as securities litigation around ESG is likely to increase in the coming years, so this is an important case to follow.
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Welcome to my blog! It is a combination of posts from my strategic writing (spring 2022) and personal branding (spring 2023) courses at UNC. I hope you will enjoy reading the posts and learning about the environment and communication.
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