Democrats want companies to disclose their climate risks — and fossil fuel industry is worried

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Proposals to make corporate climate risk disclosures mandatory are sprouting up in the platforms of almost all Dem White House hopefuls

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The calls for more disclosure around climate risks aren't limited to companies' SEC filings. Last week, Commodity Futures Trading Commission member Rostin Behnam called for the agency to form a subcommittee focused on climate-related financial market risks, and he warned that global warming could spark a 2008-style financial meltdown.

"If these issues were clearly disclosed according to an SEC format like that which is required for reserves, credit [ratings] could be downgraded sooner rather than later for certain companies," Fugere said. “I have no idea what level this would rise to but, from a broader economic standpoint, this would appropriately facilitate re-ordering toward a low-carbon transition."

“It’s a hard to for a man to see something when his livelihood depends on his not seeing it,“ Hipple said. The American Gas Association, American Fuel & Petroleum Manufacturers and other industry groups fought plans to include more information on environmental, social, or governance concerns in disclosures when the SEC“The SEC should avoid promoting political, social, and public policy objectives, or attempting to drive related corporate behavior advocated by special interest groups,” Exxon Vice President and Controller David Rosenthal wrote in aInvestor groups support the idea of companies...

 

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