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.
#secreporting #climaterisk #climateactionnow #esgplaybook #SoniaZugel
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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