Publisher's Synopsis
This report examines the extent to which one group of companies is failing to disclose their exposure to financially material environmental issues. In a previous WRI report, Pure Profit: The Financial Implications of Environmental Performance, the authors showed that in the U.S. pulp and paper industry--just one of many sectors for which the environment poses financial threats--many impending environmental issues are likely to affect companies' competitive positions and fundamental shareholder values. Coming Clean demonstrates that such risks have not been adequately disclosed in annual or quarterly filings to the Securities and Exchange Commission. Without adequate information on the financial risks and opportunities facing companies, securities are likely to be mispriced and investors subsequently misled. Omitting to disclose environmental risks appears to infringe the SEC's rules and guidelines and raises issues regarding the SEC's enforcement policies as well as companies' reporting practices.
