How the SEC’s Rules Will – and Won’t – Solve Climate Change

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Author(s):
Publish Date:
March 22, 2022
Publication Title:
Impact Alpha
Format:
Op-Ed or Opinion Piece
Citation(s):
  • Alicia Seiger, Thomas C. Heller & Marc Roston, How the SEC’s Rules Will – and Won’t – Solve Climate Change, ImpactAlpha (Mar. 22, 2022), https://impactalpha.com/how-the-secs-rules-will-and-wont-solve-climate-change/.
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Abstract

The U.S. Securities and Exchange Commission has proposed landmark climate-related disclosure requirements for public companies to inform investors about the risks a changing climate poses to firms.

The upside? The SEC went big. Access to consistent and comparable climate data may result in more capital to companies reducing harmful emissions and increasing climate resilience.

The proposed rule fully embraces the Task Force on Climate-related Financial Disclosures, or TCFD, framework, a tool already in widespread use among financial regulators and institutions in Europe and Asia.