Contributor(s): Professor Christian Leuz | Publicity and transparency are frequently proposed as solutions to societal and environmental problems; after all, sunlight is famously said to be the best of disinfectants.

Such regimes have become common place for consumer protection, food safety, healthcare, campaign contributions, conflicts of interest, and more. They are viewed as less intrusive and more benign than directly regulating corporate activities. But do they work? Or are transparency regimes simply politically more expedient? These questions are very relevant in the context of sustainability as many countries are requiring firms to provide reports on their impacts on the environment and society more broadly. We will therefore ask what transparency can do when it comes to widespread environmental impacts, such as greenhouse gas emissions. Can disclosure mandate help clean up the environment? What are the limitations of transparency and why it is not always the best solution?