Protecting investors and the environment through financial disclosure

Abstract

Financial markets are increasingly concerned about financial risks resulting from companies environmental exposures and are demanding greater disclosure and transparency. Despite long-established securities law and regulations requiring such disclosures, companies have not fully complied nor has the Securities and Exchange Commission vigorously pressed enforcement actions. Studies of disclosure of material environmental information in electricity generation and other environmentally-sensitive industries show a pattern of inadequate disclosure. © 2004 Elsevier Ltd. All rights reserved.