Good Business: ESG on Capitol Hill

Inside: A U.S. House committee plans a hearing today on ESG disclosures. The cost of electric cars is higher than you think. Flying shame is altering travel choices in Sweden. The trade war hits wind turbine towers. An easy climate fix has more potential than expected. — Emily Chasan

The U.S. House Financial Services Committee will hold a subcommittee hearing today about the need for U.S. regulators to create a standard disclosure framework for ESG issues. The debate is likely to center around U.S. regulators approach to materiality — a topic that is rapidly changing for investors worried about environmental and social issues. The hearing comes just weeks after the European Union released a technical plan aimed at better classifying environmentally sustainable economic activities. "Requiring ESG disclosure is unquestionably under the purview of the SEC, and is a necessary step in ensuring investment fiduciaries fulfill their duty to incorporate all financially material data," Fiona Reynolds, CEO of the Principles for Responsible Investing, said ahead of the House hearing.

Carbon traders in Europe want protection from the coal collapse. The International Emissions Trading Association said this week that EU governments should cancel out corresponding amounts of CO2 permits when phasing out coal to keep the carbon market going.