Reassessing climate disclosure demands: An examination of stakeholder perspectives beyond institutional investors

Abstract

AbstractThis article examines support for mandatory climate impact disclosures beyond institutional investors and investigates societal backing for such disclosures. Analysing public comments on the Securities and Exchange Commission's proposed climate disclosure mandate, the study reveals varying levels of support across demographics, ideologies, and industries. Notably, younger individuals, affluent individuals, females, urban residents, minorities, college graduates, Democrats, environmental activists, and certain regions overwhelmingly endorse the rule. Conversely, opposition is pronounced among high‐school graduates, rural populations, small business owners, agricultural and energy sector employees, publicly traded companies, and residents of the South and Midwest. While the SEC cites institutional initiatives and surveys to justify the demand for climate disclosures, this article highlights a potential oversight of other stakeholders' perspectives. It is unclear that mandatory disclosure is necessary when a company's business is not at material financial risk from climate change.