(6 March 2024 – United States) The Securities and Exchange Commission (SEC) is set to issue a final rule requiring companies to raise climate risk disclosures.
Climate disclosures would be made in annual filings companies make to the SEC and in registration statements filed before an initial public offering. Publicly listed US companies make climate disclosures on a voluntary basis, and they remain “uncommon in all but a few sectors,” according to S&P Global.
Corporates will also be mandated to report total greenhouse gas emissions, both created directly by a company and indirectly along its supply chain.
“Investors want to be able to accurately price those risks and opportunities as they look medium and longer term at their investments, especially retirement investors who may have a timeline decades in the future” said US Sustainable Investment Forum Director of Policy, Rachel Curley.