The effectiveness of social and environmental governance varies by sector. For example, in the private business sector, Aragòn-Correa et al.  assess the effects of mandatory and voluntary regulatory pressure on firms' environmental strategies. In summary, they find that analyses of the effects of voluntary pressure demonstrate that by themselves they are unlikely to bring about significant improvement in environmental outcomes. Professional organisations, however, have made progress in addressing sectoral standards relative to the adaptation process. This includes the development of new industry guidelines, codes, standards and specifications, in addition to the implementation of infrastructure inventories that incorporate evaluation of vulnerabilities and identification of priority at-risk areas . Voluntary pressures by themselves are not likely to result in positive outcomes and instead should be coupled with mandatory regulatory pressure to achieve the environmental response desired .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report