Proposed SEC Disclosures to Give Shareholders Insight to Climate Risks
WASHINGTON, D.C. — The U.S. Securities and Exchange Commission today announced it is proposing amendments to require reporting companies to publicly disclose climate-risk related information. Under the proposed rule, companies would need to let investors and the public know what climate-related risks the company faces, and how the companies plan to deal with the risks posed by climate change. Further, companies would need to report their greenhouse gas emissions and information about a company’s transition plans. This proposed rule is squarely within the SEC’s mandate to provide investors with material information.
In response, Tracey Lewis, policy counsel at Public Citizen, issued the following statement:
“The SEC’s proposal is an important step toward protecting investors, ensuring fair and efficient markets, and supporting capital formation. With scientists providing ever starker warnings regarding the breadth and severity of climate-related harms, this proposal will give investors information they need to make informed investment decisions and allocate capital as they wish.
“Under today’s proposed rule, the SEC moves toward bringing the U.S. in line with other countries already demanding disclosures, creating more transparency and leveling the playing field for companies who are serious about addressing climate-related risk.
“We urge the agency to carefully review suggestions for improvements to the rule and move quickly to adopt a rule that protects investors and markets.”