. Here’s what you need to know about climate disclosures and some of the challenges the SEC faces in adopting them.Investor pressure for better information about climate impacts comes from two directions.
First, some investors want to avoid companies that will be affected by climate change. The company’s products may bebecause of their impact on the climate, or its supply chains may get more expensive over time. Investors want to know which businesses will be able to adapt and preserve profitability. Second, many investors are interested in ESG investing, which involves assessing companies’ commitments to environmental, social and governance factors. Today,
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