(RoyalPatriot.com )- Within traditional American politics, there is a troubling precedent arising that incorrectly posits a direct link between functional outcomes and incremental regulation. Instead, reality demonstrates that regulation lacks the strategic plan needed to develop long-term solutions and radical innovation. The pioneering proposed climate change disclosure regulation from the US Securities and Exchange Commission ignores this lesson and falls short.
The 512-page plan, if enacted, would force public companies to report an audited collection of greenhouse gas emissions data from their direct activities, energy consumption, and value chain, among other things (i.e., Scope 1, 2, and 3, respectively). According to investigative reporting, this plan focuses on accounting procedures rather than strategic action, and it is a financial burden rather than a solution that reduces global emissions for the benefit of society.
Reports show the present investing atmosphere for ESG (Environmental, Social, and Governance) is complicated. The ESG ecosystem has almost 6,500 distinct data points. Much of the ESG data is unrelated, skewed, and quite powerful. Some of the most widely used assessment techniques are still subjective, inconsistent, and opaque. Despite this, we are witnessing a doubling down on a system that favors competitive distinctiveness above empirical outcomes.
Geopolitical reports show that as the world’s population rises, real energy solutions will be required to maintain electricity affordable and dependable. Developing nations will look for strategic partners to assist them in resolving challenges that influence their quality of life. Child mortality reduction, wealth disparity reduction, political instability reduction, and energy poverty reduction are essential elements for any community to develop a viable route to prosperity.
Media reporting shows the American economy’s technical superiority, backed by our private and public equity markets, is a vital tool that foreign nations may and should use to lay such a foundation. Unfortunately, our public equity markets aren’t as strong as they should be to supply the money needed to bring the developing world out of poverty.
Overregulation is a big part of the problem, say government watchdogs. Due to rising costs, most publicly traded companies will simply be unable to exist, much alone thrive. It is naive to expect that the SEC’s mandate of climate disclosures will address the alleged climate catastrophe.
