12 Democrat AGs Urge SEC to Require Companies Disclose Financial Risk from Climate Change

  • 12 Democrat AGs, led by California AG Rob Bonta, submitted a comment letter to the U.S. Securities and Exchange Commission (“SEC”) urging it to require U.S. companies to disclose financial risks faced by climate change, in response to the SEC’s request for public input.
  • In the letter, the AGs argue that the SEC has the authority to require detailed and accurate disclosures regarding climate-related risk from SEC-regulated companies, and such disclosures are necessary to insulate U.S. and global financial systems, investors, and Americans with invested retirement savings from associated risks.
  • Specifically, the AGs recommend the SEC require regulated companies to (i) annually disclose greenhouse gas emissions and any plans to address such emissions; (ii) analyze and disclose potential impacts of climate change and related regulation; and (iii) disclose climate change-related corporate governance and risk management strategies.