Ten lessons in sustainability regulation

Policymakers must avoid stifling innovation or overburdening companies with too many sets of rules. They must provide clear guidance on disclosure requirements, and allow business the freedom to pursue climate objectives in the most efficient way possible. 

The capital markets are a good example, where excessive regulatory rigidity has the potential to drive away issuers. If the capital markets are to achieve their critical role in the transition, flexibility is required. 

Companies must adapt to the physical, regulatory and commercial risks and opportunities presented by a low-carbon economy. Their responsibilities will include tracking significant volumes of new regulation, anticipating and responding to pressure from investors, customers and activists, and meeting stringent disclosure requirements.