Sustainable Finance and Corporate Law: Lessons from the US

This chapter traces the trajectory of two major US sustainability initiatives, the Securities & Exchange Commission’s climate risk disclosure rule and California’s mandates requiring disclosure of climate-related risks and greenhouse gas emissions. The chapter explores the motivation behind both efforts and explains how the backlash against disclosure mandates led to challenges that in both cases have, to date, been successful. The success of the challenges has been due, in part, to distinctive features of the US regulatory structure.

At the same time, these features offer unique possibilities for experimentation, innovation and incremental regulatory reform. As the debate over corporate sustainability continues, we offer cautious optimism about the potential of the US to respond to its demands.