There are many aspects to the changing regulatory landscape as
the U.S. government (and other authorities) increase their focus on
climate change and adopt policies and regulations designed to
presumably steer the private sector towards a focus on
sustainability.
While direct regulation of ESG issues--such as new disclosure
requirements by the SEC, or enforcement actions against significant
sources of GHG emissions--is one aspect of these efforts, it is
important to recall that there are also indirect levers that the
government can operate, even if it has not yet chosen to do so.
For example, as noted below, climate change activists have
been pressing the Federal Reserve to stifle the flow of capital to
industries perceived as especially damaging to the environment.
While neither the Federal Reserve nor other such regulatory
institutions have yet embraced this strategy--i.e., imposing
onerous terms on loans to carbon-heavy industries--it remains a
possible tactic
