New Legislation Is a Critical Step to Advance Climate Risk Disclosure

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New Legislation Is a Critical Step to Advance Climate Risk Disclosure

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New Climate Risk Disclosure Act, introduced today by @SenWarren, would require companies to disclose critical information about their exposure to climate-related risks and help investors better assess these risks. Read Ceres' statement: http://bit.ly/2QCotuI
Monday, September 17, 2018 - 3:00pm

CAMPAIGN: Climate and Energy

CONTENT: Press Release

BOSTON, September 17, 2018 /3BL Media/ - The nonprofit sustainability organization Ceres applauds Sen. Elizabeth Warren’s, D-Mass, efforts to advance legislation that directs the U.S. Securities and Exchange Commission to issue rules requiring companies to disclose critical information about their exposure to risks posed by climate change. 

The legislation, known as the Climate Risk Disclosure Act, introduced today, builds off existing investor and advocacy efforts to advance climate risk disclosure, ensuring that companies are more transparent in how they are addressing these risks.

Ceres CEO and President Mindy Lubber issued the following statement:  

Climate change — from rising sea levels and extreme storms to the rapid transition to new, low-carbon technologies — can pose significant material financial risks to companies across all sectors of the economy. Ceres commends Sen. Warren’s efforts to scale up action on climate change, pragmatically addressing climate-related financial risks, and ensuring a smooth transition to a low-carbon economy.

The Climate Risk Disclosure Act will allow the market — via institutional investors and others — to better assess these risks, spurring both public and private sector actors to address climate change while promoting financial stability across the U.S. economy. Investors need this decision-useful information to manage the growing climate-related financial risks in their portfolios. 

This legislation supports the work that Ceres and investors worldwide are engaged in with companies to accelerate the low-carbon future. In 2010, Ceres and a diverse group of investors successfully persuaded the U.S. Securities and Exchange Commission to issue the first-ever disclosure guidance for corporate reporting on climate change risks. Ceres has long pushed the SEC to improve reporting standards on a broader range of material and financial sustainability risks. It is critical that the SEC acknowledges the importance of disclosing these risks to investors. 

Investors have long recognized the threats and opportunities posed by a warming planet and the need for a low-carbon transition. However, corporate reporting on climate risk is still minimal and does not meet the needs of investors — and because the market is lacking this information, we could be dramatically undervaluing the financial impacts on the economy.

Ceres is a sustainability nonprofit organization working with the most influential investors and companies to build leadership and drive solutions throughout the economy. For more information, visit www.ceres.org and follow @CeresNews.

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United States Senator Elizabeth Warren (D-Mass.) announced the Climate Risk Disclosure Act to require public companies to disclose critical information about their exposure to climate-related risks. The legislation will help investors appropriately assess climate-related risks, accelerate the transition from fossil fuels to cleaner and more efficient energy sources, and reduce the risks of both environmental and financial catastrophe. It builds on the work of former Vice President Al Gore, who has warned that ignoring the risks of climate change is producing a "carbon bubble" that will have severe economic consequences. The Climate Risk Disclosure Act is co-sponsored by Senators Brian Schatz (D-Hawaii), Edward J. Markey (D-Mass.), Cory Booker (D-N.J.), Sheldon Whitehouse (D-R.I.), Jeff Merkley (D-Ore.), Kamala Harris (D-Calif.), and Kirsten Gillibrand (D-N.Y.).

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Keywords: Environment | CERES | Climate Action | Corporate Social Responsibility | Elizabeth Warren | Responsible Business & Employee Engagement | Sustainable Development Goals

CAMPAIGN: Climate and Energy

CONTENT: Press Release