Misplaced expectations from climate disclosure initiatives

The financial sector’s response to pressures around climate change has emphasized the role of disclosure, notably through recommendations Financial Stability Board’s Task Force on Climate-related Disclosures. This Perspective examines two dimensions expectations behind transparency and disclosure initiatives: belief that disinvestment is driven by disclosure; investment ‘switches’ from high- low-carbon assets. We warn about risk disappointment inflated what can really deliver suggest some areas research public policy should examine mobilize required capital meet goals. Disclosure investments was expected drive divestment high-carbon considers limitations shift different markets low- assets; mobilizing finance requires more than disclosure.