The SEC will likely call for qualitative and quantitative disclosures to avoid green washing and provide greater clarity on climate risk.
A few other points included:
The SEC chair said disclosure should be mandatory for companies and not voluntary. He also said the reports should be “consistent and comparable” across firms.
Gensler said he has asked the agency’s staff to consider requiring the information in year-end financial filings, known as 10-Ks.
The SEC staff is also looking at whether companies should reveal emissions from other firms in their supply chains, known as “Scope 3.”
Businesses may need to provide “scenario analyses” on how they “might adapt to the range of possible physical, legal, market, and economic changes,” Gensler said.
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Read the full discussion: https://www.bnnbloomberg.ca/gensler-says-sec-climate-risk-rules-will-be-proposed-by-year-end-1.1633881
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Antoniozet says
The SEC will also develop standards for companies who wish to make commitments to reduce emissions by a certain date and for investment managers who advertise their funds as environmentally friendly, Gensler said. In a question and answer session Gensler declined to weigh in on a debate over whether new SEC climate rules will simply push carbon intensive industries and assets into hands of private owners not overseen by the regulator.