"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 SEC Chair Gary Gensler.
Under the new rule, companies would need to explain how climate risks would affect their operations and strategies. They'd be required to share the emissions they generate and larger companies would need to have those numbers confirmed by independent consulting firms. They'd also need to disclose indirect emissions generated by supplies and customers if those are"material" to their climate goals.
However, experts have warned that time is of the essence. The Intergovernmental Panel on Climate Change recentlystating that many of the impacts of global warming are"irreversible" and that there's only a brief window of time to avoid the worst. UN Secretary General Antonio Guterres called it a"damning indictment of failed climate leadership."
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