William & Mary Environmental Law and Policy Review
Abstract
Investors crave sustainable business data as a lucrative indicator of long-term business success, yet this demand is not being met by current environmental, social, and corporate governance (“ESG”) investment portfolios, voluntary business disclosure reports, or the Securities and Exchange Commission’s (“SEC”) climate-related rule proposal. Instead, an alternative, voluntary stock exchange premising entry upon satisfaction of industry-specific ESG prerequisites, would directly connect investors with the sustainable investments they desire without requiring them to interpret dense scientific data and decipher which companies exercise positive business practices.
This Article demonstrates that creating an alternative stock exchange for trading solely sustainable businesses would provide a mechanism to allow investors to back companies that align with their values and enforce compliance with preset sustainable business standards, going beyond mere disclosure requirements while avoiding the political influence and mandated capital compliance costs associated with rules implemented by the SEC.