SEC Financial Disclosure Rule is Good for Investors

WASHINGTON – The Securities and Exchange Commission (SEC) voted today to issue a new rule requiring companies to disclose financial risks related to climate change.  

The rule requires public companies to provide reliable and comparable information on the climate-related financial risks and opportunities they are confronting. The final rule requires only limited disclosure of greenhouse gas emissions for larger companies—scaled back from the requirements included in earlier drafts of the rule. 

Following is reaction from Elizabeth Derbes, director of financial regulation and climate risk for NRDC (Natural Resources Defense Council):

“Climate risk is financial risk. This is a sensible rule to protect investors: it gives them access to clear, comparable, relevant information on the measures companies are taking to manage climate risks and opportunities. The SEC is well within its authority to take this step, and U.S. capital markets will be better off.

“What’s wrong with this rule is that it needs to do much more. Investors have been pressing for mandatory disclosure of greenhouse gas emissions, and the agency needs to give them a fuller picture of companies’ risk exposure.”   

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law, and people power to confront the climate crisis, protect public health, and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, Beijing and Delhi (an office of NRDC India Pvt. Ltd). Visit us at www.nrdc.org and follow us on Twitter @NRDC.