The politics of carbon disclosure as climate governance

The growth of carbon disclosure is the result of three core drivers: regulatory compliance, pressure from non-governmental organizations (NGOs) and managerial information systems intended to facilitate participation in carbon markets, reduce energy costs and manage reputational risks. Carbon disclosure has become an important institution of governance, raising awareness about climate change, clean energy and energy efficiency, while generating legitimacy for the principle of external accountability. In turn, this has opened political space for regulatory initiatives that mandate disclosure and formalize carbon accounting standards. In early 2010, the US SEC issued new guidance recommending comprehensive disclosure of 'material risks', listing considerations such as the impact of climate change regulation and international accords, the consequences of legal, technical, political and scientific developments, and the physical impacts of climate change. [...]carbon information is integral to carbon markets and corporate carbon management. The institutionalization of standardized information reporting systems, such as the Global Reporting Initiative and the CDP, enables NGOs to undertake benchmarking and demand certain performance levels. (Executive director, governmental energy association, Washington, DC, 29 November 2007) The CDP is a non-profit UK-based organization that sends an annual questionnaire to companies on topics including GHG emissions, climate-related risks and opportunities, and management programs and procedures.