Mandatory GHG Disclosure Leads to Emissions Reductions by Enabling Benchmarking

The US Greenhouse Gas Reporting Program mandates facilities to report GHG emissions. Following disclosure, facilities reduce emissions by 7.9%. Benchmarking—using peers’ disclosures to assess relative performance—drives these reductions. Concerns about future legislation motivate this behavior, while measurement alone, without disclosure, does not lead to emissions reductions.