S.E.C. Poised to Unleash a Sweeping Climate Disclosure Rule
The Securities and Exchange Commission is poised to unleash rules mandating that public companies tell their shareholders and the federal government how they affect the climate.
The nation s top financial regulator gave initial approval to the much-anticipated climate disclosure rule at a meeting on Monday, moving forward with a measure that would bolster the Biden administration s stalled environmental agenda.
The proposed rule approved by a 3-to-1 vote aims to give investors a clearer picture of the risks that climate change might pose to companies, because of disasters like droughts and wildfires, changes in government environmental policies or consumers declining interest in products that contribute to global warming.
But the consequences could be more far-reaching: Environmental and corporate-governance advocates said the transparency the rule requires would hold companies accountable for their role in climate change, and give investors more leverage in forcing changes to business practices that contribute to rising global temperatures.
Bad idea.