SEC Chief Suggests Mandatory Climate Disclosure Rule
Securities and Exchange Commission Chairman Gary Gensler said Wednesday that he was asking staff to consider making companies disclose climate risks in their annual reports, noting that investors want more information on climate change and directing the SEC to develop a carbon-disclosure rule by the end of the year. This would open companies to fraud investigations should they disclose inaccurate or insufficient information, as without this step, companies will continue to play down climate-related risks and exaggerate their sustainability efforts, advocates argue. Gensler also suggested that new disclosure requirements could include the emissions associated with consuming a company’s products, for example the emissions produced by burning oil.
Sources: Wall Street Journal $, CNBC, Bloomberg, MarketWatch, Bloomberg Law
This is a quick news brief from Nexus Media. (Image added by editor.)
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