In the latest indication of the Biden administration’s “whole of government” approach to climate change, the US Securities and Exchange Commission (SEC) on Monday proposed a rule that will require publicly traded companies to disclose the risks from climate change that are reasonably likely to have material impacts on their businesses or financial condition. In addition, the rule will require the disclosure of certain climate-related financial statement metrics in a note to companies’ audited financial statements.
Perhaps the most important element of the SEC’s proposal is the requirement that companies disclose their greenhouse gas emissions.