What Institutional Investors, Energy Companies, and You Should Know About Carbon Reporting
by Aaron Ezroj*
Policymakers have started asking institutional investors to report on their exposure to the carbon economy. This reporting forces investors to consider whether they are investing in companies that have a high carbon footprint or that generate a large percentage of their revenue from fossil fuels. This article provides guidance on the latest developments in carbon reporting. The guidance should help attorneys advise institutional investors on their reporting obligations and how to guard against what some financial analysts have dubbed a "carbon bubble." It should also help attorneys advise energy companies on how concerned institutional investors will view them.