Impact Transparency on Climate Risks Is Good for Business, Investors and the Economy as a Whole

Originally published on Linkedin

A group of 60 impact-oriented business and investor organizations raises our collective and enthusiastic support for the SEC’s proposal to require U.S.-listed companies to disclose their exposure to climate risks, following longstanding calls from investors and other stakeholders. See our full comments to the SEC and keep reading to hear from the letter’s signatories directly.

“This represents one of the boldest steps a U.S. regulator has taken toward accounting for the risks of climate change to our economy in a transparent and meaningful way. We applaud the SEC for ensuring that investors have access to clear and comparable data on a company’s climate impacts.” - Fran Seegull, President, U.S. Impact Investing Alliance 

“We support the U.S. Securities and Exchange Commission's move to mandate disclosure of greenhouse gases and climate-related risks for all public companies operating in the United States. Transparency through disclosure about this systemic risk will support corporate and investor action to address the negative impacts of climate change, particularly on our most vulnerable communities, and help to create a more just future. This is an important first step towards comprehensive ESG disclosure that helps realign our economy so it benefits all people, communities, and the planet.” - Jorge Fontanez, Chief Executive Officer, B Lab US & Canada

“The SEC's call for climate risk disclosure will strengthen capitalism and benefit both companies and investors. Disclosure will reduce the cost of capital and increase reward for companies demonstrating climate resilience. It will also spur innovation and competition with companies learning from each other's climate practices.” - Meredith Sumpter, CEO, Coalition for Inclusive Capitalism

“The GSG joins its U.S. member the U.S. Impact Investing Alliance and other leading business & investor organizations in supporting the SEC’s proposed requirements for companies to report on their climate risks and impacts. We see this is a crucial step forward in our path towards achieving greater impact transparency, both in the U.S. and globally.” - Sebastian Welisiejko, Chief Policy Officer, Global Steering Group for Impact Investment (GSG)

“It is past time that climate risk mitigation be considered part and parcel of a corporation's fiduciary duty. Consider these climate disclosure rules as a starting point for comprehensively disclosing environmental, societal, and governance risks doubly material to both financial and non-financial performance.” - Yangbo Du, Managing Director, Sustainable Development Investment Finance Partnership

“Troop is proud to sign onto the Coalition on Inclusive Economic Growth’s letter to the SEC reinforcing the importance for standardized climate disclosure. Transparency is a necessary first step for corporate accountability. These rules will help best serve the long-term well being of retail investors, providing them with the context and information needed to make the most informed proxy-voting decisions, leading to greater voting participation.” - Felix Tabary, Co-Founder, Troop

“The Intentional Endowments Network welcomes the SEC’s climate disclosure rule as a necessary step in addressing the systemic risks posed by climate change. As more investors come to understand the critical urgency of reducing climate risk and make net zero portfolio commitments, clear and consistent disclosure of greenhouse gas emissions and climate risk from companies is essential. This rule will protect and enhance value for companies, investors, and society as a whole.” - Georges Dyer, Executive Director, Intentional Endowments Network

“The Russell Family Foundation is proud to join these impact-oriented organizations raising our support for the SEC’s proposed requirements for companies to report on their climate risk and impacts. Transparency matters and standardizing disclosures allow investors, like us, to make informed decisions that reduce risk and impacts, and ultimately advance the fight against climate change” – Kathleen Simpson, CEO, The Russell Family Foundation

“We applaud the SEC for taking the long-overdue step of proposing a solution to the problem of undisclosed climate risks. Investors and the public deserve to know the climate-related risks that companies face and how they are being addressed. This is especially important given how many companies have made commitments to address their climate impact without disclosing the full scope of their emissions, the risks their own businesses face from climate change, or the relevant business plans to achieve their climate pledges. Understanding and mitigating growing climate risks is critical to building a stronger financial system and protecting investors and communities from climate-related shocks. We urge the SEC to move quickly to finalize the strongest rule possible.” – Dan Chu, Executive Director, Sierra Club Foundation  

Read the group's full comments here.