Florida passed a state law that has standards are somewhat close to what you wrote, yet communities down here still voted to ban datacenter construction.
Even if a good willing CEO wants to do what's right, he is pressured not to do it by the unlegislated free market - his company is at (economical) disadvantage with the opposition, putting the company at risk or not meeting his obligations to shareholders. Let's not blame consumers either, because they cannot be informed about consequences in the nth order either.
If the legislation is reasonable, everyone must play by the same rules, both the good and the bad willing CEOs. The companies gain trust, the government too, and the consumers (and affected citizens) win.
Because after decades of lies, one tends to just assume that pathological liars are gonna lie pretty much all the time?