Private companies: the missing link on the path to net zero

Gözlügöl, Alperen A. ORCID: 0000-0001-7104-7197 and Ringe, Wolf-Georg (2023) Private companies: the missing link on the path to net zero. Journal of Corporate Law Studies, 22 (2). pp. 887-929. ISSN 1473-5970

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Abstract

Global consensus is growing on the contribution that corporations and finance must make towards the net-zero transition in line with the Paris Agreement goals. However, most efforts have ultimately focused on public companies. This article argues that such a focus falls short of providing a comprehensive approach to the problem of climate change. It particularly examines the contribution of private companies to climate change and the phenomenon of brown-spinning. We show that one cannot afford to ignore private companies in the net-zero transition. Yet, private companies lack several disciplining mechanisms available to public companies, such as institutional investor engagement, certain corporate governance arrangements, and transparency through regular disclosure obligations. Nevertheless, along with some equally applicable generic regulatory instruments, private companies might be subject to external push by their financiers, banks. The article closes with policy implications. Primarily, we discuss and evaluate the recent push to extend climate-related disclosure requirements to private companies.

Item Type:	Article
Additional Information:	© 2024 Taylor & Francis
Divisions:	LSE
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences K Law
Date Deposited:	23 May 2024 11:48
Last Modified:	23 Nov 2024 05:57
URI:	http://eprints.lse.ac.uk/id/eprint/123593

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