Opinion: Mandated disclosures may make companies less efficient and less profitable
In recent years, there’s been more pressure for investment managers and managers of active businesses to increase their reporting of so-called environmental, social and governance (ESG) metrics in their financial and non-financial public disclosures. Regulators and legislators are implementing rules to promote this objective. For example, the European Union has had ESG disclosure mandates on publicly listed companies since 2018, tied to the U.N.’s sustainable development goals, which include poverty relief, gender equality, and affordable and clean energy.
