Dear John,
87% of Americans want U.S. companies to be transparent about their impact on people and the planet, according to a recent poll.
We know you agree, which is why we are so excited to share that the Securities and Exchange Commission (SEC) just released a proposed rule requiring mandatory climate disclosure from all U.S. public companies, called Enhancement and Standardization of Climate-Related Disclosures for Investors.
This is a historic opportunity to shape the responses of U.S. financial markets to climate change and protect investors from climate risk. It is also a moment to celebrate, given that Ceres has advocated for climate disclosure for decades. |
The mission of the SEC is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. With this proposed rule, the SEC is responding to the need by investors for clear, consistent and comparable reporting from companies to produce useful investment insights and ensure financial markets can properly price and act on the physical and transitional risks and opportunities of climate change.
 We strongly encourage you to welcome the rule publicly on social media.
Tell the SEC to help protect your investments by requiring companies to report their greenhouse gas emissions and climate risks.
While many companies already report voluntarily, investors need consistent and comparable information to make informed decisions in managing their investment portfolio. Many investors and banks are committed to decarbonizing their portfolios and aligning investments with the Paris Climate Agreement, and are urging companies to position themselves to address climate risks.
Mandatory, standardized disclosure provides clear expectations for companies to communicate their climate risks to investors. This levels the playing field and rewards companies that explain how they are identifying and managing climate financial risk, how they set and plan to meet their climate targets, how they will achieve emissions reduction targets and how they are making their business resilient to climate risk. Supporting mandatory disclosure sends a positive message to employees and customers, helps companies stay ahead of changes in regulations, and proactively assess and address risks in advance of sudden shifts in market demands.
Momentum around the world for mandatory climate disclosure is growing with 8 countries requiring it: Belgium, Canada, Chile, France, Japan, New Zealand, Sweden, and the United Kingdom. It's time for mandatory disclosure in the U.S. |
P.S. Join us for a virtual, public briefing on the proposed rule with SEC Chair Gary Gensler on April 12th from 2-3:15pm ET.
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