April 29, 2020

Forbes: Warren Urges SEC To Demand Companies Disclose Their Exposure To ‘Climate Risk’

Largely throughout Elizabeth Warren’s run to become the Democratic nominee for President of the United States, she had serious concerns about how climate change would impact our economy. As we see in a letter made public just yesterday, that concern hasn’t gone away.

In her letter, addressed to the Chairman of the Securities and Exchange Commission (SEC), Warren touches on one key point: climate change joins the suite of risks that companies have and making disclosures as to whether a company is overexposed to climate change is crucial. In short, current practices “would not give investors and the public the information needed to make well-informed investment decisions,” Warren says.

This discussion around climate risk disclosures is not new; the Chairman of the SEC has already expressed that he is “pleased with the Commission’s approach to this [climate] issue to date.” Because of this, the SEC currently conveys the idea that climate change could impact business economics but hasn’t formalized an agreement that specifically mandates companies to disclose climate risks to investors.

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Read the full article on the Forbes website here. 
By:  Steven Li
Source: Forbes