Principle: Beier Full Market Disclosure
The core impediment to a truly sustainable economy is a failure of information. Critical data on environmental, social, and governance (ESG) factors remains opaque, trapped in black boxes, or non-existent. Beier Full Market Disclosure is a new protocol designed to solve this by transforming sustainability data from a private "investment edge" into a transparent public good.
“Beier Full Market Disclosure is a concrete innovation that ensures climate becomes a part of every investment decision as rapidly and openly as possible, creating climate (and ESG) price discovery for the first time.”
“Moreover, markets will quickly improve by iterating in a radically transparent way – as loads of new information is released daily, the innovation will be unrelenting, reducing risk.
“Standards like the Task Force on Climate-related Financial Disclosure (TCFD), Sustainability Accounting Standards Board (SASB), U.N. Principles for Responsible Investment (UNPRI), etc. would become applications that the Full Market Disclosure environment automatically tests and refines. Full Market Disclosure is a funnel that can efficiently process all of these competing applications. The more, the better!
“They won’t be debated or promulgated – they’d be organically ratified by use in real world investing, self-evident over time.
“Full Market Disclosure will shine when climate journalism hums loudly, processing all the information that comes out daily, making greenwashing next to impossible, and unlocking a tsunami of effectively invested green finance.”
“Market failures in finance have traditionally been mitigated through transparency. But instead of seeking transparency from just the companies (aka issuers), as is the focus now, let’s seek transparency from all the large players that drive the markets and share it equally so that everyone can use it.
“I call this ‘Full Market Disclosure.’ It turns an “investment edge” into “public goods” for everyone. ”
Excerpts from “ESG Data is a Public Good. Let’s Open It Up.” Published in Impact Alpha, November 21, 2021
The genesis of this framework was a formal submission to the U.S. Securities and Exchange Commission in 2021, outlining the core principles of a transparent, public-good approach to sustainability data. The thesis was later expanded upon in a definitive article for Impact Alpha.