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What Role Should Market-Based Environmental Ratings Play in Capital Markets

February 25, 2020
9 am-12 pm
Rotman School of Management, Fleck Atrium

The Canadian Expert Panel on Sustainable Finance noted, ‘Financial markets will play a fundamental role in directing necessary capital flows, managing complex risks and unlocking economic potential Markets work best when assets are properly valued; however, in today’s market economy, climate factors are often mispriced and climate risks are generally underappreciated.’ Markets are responding, with firms expanding their voluntary environmental reporting, and third-parties producing investor-focused environmental ratings for firms. In addition, there are calls for mandatory reporting regimes as well as various standard setters. Our ½ day session will describe the current state of environmental disclosure and investor-focused ratings. Are these ratings affecting issuers, investors and governments? What determines environmental reporting and investor-focused ratings? What are the risks and opportunities of this capital market response? What are the potential effects of voluntary or mandatory reporting regimes?

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Insights from “Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review”

Professor Christian Leuz
Joseph Sondheimer Professor of International Economics, Finance and Accounting
University of Chicago - Booth School of Business

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Andrew (Andy) Chisholm
Director, Royal Bank of Canada

Michael Jantzi
CEO, Sustainalytics

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