The measure, which is now open to public comment, it follows similar provisions from regulators in Japan and Europe and seeks to standardize emissions reporting.
“Climate risks pose financial risks to companies”, SEC Chairman Gary Gensler said.
Gensler argued that the measure could give “reliable information on climate risks in order to make investment decisions”.
The new regulations would be in force between 2024 and 2026. Small businesses could be exempt from the measure.
“This is a defining moment”said Allison Herren Lee, a Democratic commissioner who supports the change.
But Hester Peirce, the only Republican member of the SEC and the only one of the four commissioners to vote against the provision, argued that the current rules sufficiently take into account climate risk and the new measure distorts the agency’s regulatory mission. .
“This forces investors to view companies through the eyes of a set of stakeholders, for whom a company’s climate reputation is as important or more important than its financial performance.”Pierce stated.
Many green shareholders and big investors pressure companies to take action against climate change.
Source: Ambito
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