WASHINGTON — Representative Pramila Jayapal (WA-07), chair of the Congressional Progressive Caucus, issued the following statement in response to a new proposed rule from the Securities and Exchange Commission (SEC) that would require greater disclosure from public companies when climate change is impacted.
“Just last week, the Congressional Progressive Caucus released an agenda of executive action for the Biden administration to address climate change, increase economic fairness, and much more. We are thrilled to see that today, we have the first movement on those priorities coming from the SEC — firmly in line with its mission to protect investors and create orderly, fair, and efficient markets.
“For years, investors have been asking for information regarding the climate impact of public companies’ activities in their decisions — but there was no requirement that such impact be disclosed. Instead, investors were made to rely on companies volunteering this information or following inconsistent disclosure laws. That is a problem for corporate transparency, for well-informed investment decisions, and for the federal government’s efforts to conduct fair and consistent regulation. Today, the SEC is fulfilling its goals as an institution and delivering for investors who have long needed this information to guide their choices. With the implementation of this new rule, companies will have clear and consistent guidance to follow, and investors can feel confident that firms will provide shareholders with the relevant information they need regarding climate impacts. It’s one more example of how the Biden administration is working to hold corporations accountable and create a fairer economy. We applaud the Commission for this proposed rule, and look forward to seeing it finalized quickly.”
The Congressional Progressive Caucus’ executive action agenda, released Thursday last week, includes the following priority that would be met through the SEC rule:
“Advance corporate transparency through a Securities and Exchange Commission rule requiring public companies to disclose information about their exposure to climate-related risks, including: the company’s direct and indirect greenhouse gas emissions; the total amount of fossil fuel-related assets the company owns or manages; the company’s expected valuation if climate change continues at its current pace or greenhouse gas emissions are restricted to meet the 1.5 degrees Celsius goal; and the company’s risk management strategies related to the physical risks and transition risks posed by the climate crisis.”
