How will an emissions trading scheme affect business? Company earnings could fall from less than 1% to 117% under a cap and trade, according to some new research released by not-for-profit Investor Responsibility Research Center Institute and Trucost, which analyzes environmental data, looks at the financial implications of putting a carbon price on the emissions of companies listed on the S&P500. The report found that carbon costs would total nearly $93 billion, if there was a market price of $28.24. Not surprisingly, the sector with the biggest exposure is the utilities. If they had to pay for each metric ton of emissions, it would reduce their earnings by 45%. According to the analysis, 71 companies would see their earnings fall by 10%.

What does that signal to investors? It might be time for them to watch out for greenhouse gas emission disclosures. The greenhouse gas disclosures from most companies is inadequate. Legislation will change that.