What Role Should Market-Based Environmental Ratings Play in Capital Markets

The Canadian Expert Panel on Sustainable Finance noted, ‘Financial markets will play a fundamental role in directing necessary capital flows, managing complex risks and unlocking economic potential Markets work best when assets are properly valued; however, in today’s market economy, climate factors are often mispriced and climate risks are generally underappreciated.’ Markets are responding, with firms expanding their voluntary environmental reporting, and third-parties producing investor-focused environmental ratings for firms. In addition, there are calls for mandatory reporting regimes as well as various standard setters. Our ½ day session will describe the current state of environmental disclosure and investor-focused ratings. Are these ratings affecting issuers, investors and governments? What determines environmental reporting and investor-focused ratings? What are the risks and opportunities of this capital market response? What are the potential effects of voluntary or mandatory reporting regimes?

View a recording of the event →

Speakers:

Insights from “Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review”

Professor Christian Leuz
Joseph Sondheimer Professor of International Economics, Finance and Accounting
University of Chicago - Booth School of Business

Download a copy of the presentation→

Andrew (Andy) Chisholm
Director, Royal Bank of Canada

Michael Jantzi
CEO, Sustainalytics

Additional Resources:

• FINAL REPORT of the EXPERT PANEL on SUSTAINABLE FINANCE
• Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review
• Should sustainability disclosures be standardized?, Chicago Booth Review
• Sustainalytics chief: ‘We are past the time of voluntary disclosures’