The Securities and Exchange Commission proposes that business registrants must be required to disclose information related to climate risks.
SEC said Monday it wants businesses to submit registration statements and periodic reports that include information on climate risks potentially affecting business operations, results and financial conditions.
The agency also wants these documents to include financial statement metrics that consider climate-related factors.
The information to be disclosed must discuss how the registrant manages climate-related risks, how these risks impact the business and how climate-related events affect line items of the registrant’s financial statements.
Registrants would be given a phase-in period if the proposed rules are implemented.
“I am pleased to support today’s proposal because, if adopted, it would provide investors with consistent, comparable and decision-useful information for making their investment decisions, and it would provide consistent and clear reporting obligations for issuers,” said Gary Gensler, who chairs SEC.