Today, Bloomberg Tax published an analysis by Professor and Associate Dean Barbara Porco of the Fordham University Gabelli School of Business in which she argues that laws like the Security Exchange Commission’s (SEC) new climate risk disclosure rules are already happening in the EU.
“Capital markets outside the US are already required to disclose information on climate-related issues,” Porco writes. “For example, EU law already requires all large and listed companies to disclose what they see as risks and opportunities that arise from social and environmental issues, along with the impact of their own activities on people and the environment, as part of European Green Deal. And investors are demanding this information, so these new rules shouldn’t come as a surprise. In some cases, the rules are even more extensive than what the SEC has proffered.”
The SEC’s climate risk disclosure rule is an important step to ensure companies disclose risks that small businesses, investors, and people saving for retirement need to know in order to safeguard their money. Establishing climate disclosure requirements is critical for a resilient American financial system in the 21st century – investors demand this information and the U.S. will fall behind our global competitors without it.
Porco continues: “The added ‘burden; for these larger corporations isn’t as significant as it’s being played out to be, and most companies are already bearing it, as many either operate under the requirements of the EU or in a specific state with its own expectations on climate disclosures. These new requirements just complete basic accounting standards for the modern business world.”
Americans overwhelmingly and across party lines support the SEC’s climate risk disclosure requirements, and they agree financial managers should be empowered with this information. Members of Congress should do what’s right for the country, the environment, and the future and support the new rules.
According to a UAF and Data for Progress poll, two-thirds of voters (80% of Democrats, 65% of Independents, and 55% of Republicans) support the proposed SEC rule, which would require publicly traded companies to disclose information about direct and indirect greenhouse gas emissions.
Read the full analysis HERE.
