Gary Gensler, the chair of the US Securities and Exchange Commission, has said the SEC is considering adjusting its climate risk disclosure rules for public firms.
According to ESG Today, in an interview with NSBC Gensler stressed the importance of the new rules in order to help protect investors, who are already making investments based on climate disclosures.
Gensler said, “It’s about bringing consistency and comparability to disclosures that are already being made about climate risk, and investors today seem to be making decisions about these disclosures.”
The SEC previously released its proposed climate disclosure rules in March 2022, which would require US firms to provide information on climate risks facing their businesses, and plans to address those risks, along with metrics detailing the companies’ operational climate footprint, and in some cases emissions emanating across their value chains.
Gensler noted that on these proposals, almost 15,000 comments have been received by the Commission.
The proposals have generated a significant amount of feedback, with Gensler noting nearly 15,000 comments the commission has received.
Gensler added, “In each of our rulemakings we review all that (the public comments), think through the economics, the legal authorities that commenters have raised, and its quite customary to make adjustments.”
Two of the key issues from the proposals that have received attention include a rule requiring climate costs to be reported in they represent over 1% of a financial statement line item, as well as the requirement in some cases to report on emissions in company value chains beyond the company’s direct control, or Scope 3 emissions.
Gensler remarked, “It’s not to us about anything achieving anything else but consistency and comparability in disclosures.”
The US Securities and Exchange Commission recently revealed that ESG investing will be a key focus in its Division of Examinations in 2023.
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