SEC Chair Gary Gensler talks about climate risk disclosure. It’s simple: Investors get to decide what risks they wish to take and companies have an obligation to share information with investors on a regular basis. Today, investors increasingly want to understand the climate risks of the companies whose stock they won or might buy. More than 550 unique comment letters were submitted in response to Commissioner Allison Herren Lee’s statement on climate disclosures in March. Three out of every four of these responses support mandatory climate disclosure rules.
The Securities and Exchange Commission adopted rules to enhance and standardize climate-related disclosures by public companies and in public offerings. The final rules reflect the Commission’s efforts to respond to investors’ demand for more consistent, comparable, and reliable information about the financial effects of climate-related risks on a registrant’s operations and how it manages those risks while balancing concerns about mitigating the associated costs of the rules.
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