Policies, Costs and Religion are Hurdles to Environmental Disclosure
Professor Paul Griffin publishes three new papers and several op-ed pieces on topic
Investors want to know more about the risks of climate change. And they are pushing governments to take action.
Three new studies led by Professor Paul Griffin at the UC Davis Graduate School of Management are analyzing the impacts of this type of environmental disclosure.
The first in this recent series of academic papers analyzes the impacts of religion on disclosure. Another paper, which also covers a long-explored topic for Griffin, covers the processing costs of disclosure. With former UC Davis energy and sustainability expert Amy Jaffe, Griffin also questions whether fossil fuel companies should be disclosing more to their investors and the public.
“The big picture is to really pay close attention to corporations,” says Griffin. ”Do not ignore what people are saying in terms of the importance of providing stakeholders information about the role of the firm and its ability to act in a sustainable way.”
Griffin says there’s “no free lunch” for corporate responsibility. Analyst costs and outside factors like local religious norms can have major impacts.
With a recent wave of climate change lawsuits against oil and gas companies, Griffin presents a few much-needed solutions to this “information gap.”
Griffin defines this special case of financial risk through three categories of uncertainty.