Why We Support the SEC's Proposed Climate-Related Investor Disclosures
by Ronald J. Sanchez, Fiduciary Trust International
On March 21, 2022, the Securities and Exchange Commission (SEC) proposed new climate-related disclosures for publicly traded companies (Proposed Rule S7-10-22 on the Enhancement and Standardization of Climate-Related Disclosures for Investors). The SEC would require that companies disclose to investors climate-related risks likely to have a material impact on their business, as well as report their annual greenhouse gas emissions.
In June 2022, Fiduciary Trust International submitted a letter to the SEC expressing firm’s support for the proposed rule. To read Fiduciary Trust International’s complete response to the SEC’s proposed rule, click here.
In 2021, Fiduciary Trust International joined with Franklin Templeton in committing to the Net Zero Asset Managers Initiative, a global climate initiative. Fiduciary Trust International believes climate change represents both a threat to the long-term stability of financial markets and a source of investment opportunity. Unfortunately, access to high-quality, consistent and reliable data has made it difficult to determine the effect of climate risk on client portfolios.
The SEC’s proposed rule will help solve these challenges by bringing a level of standardization to the industry that has not been achieved through voluntary disclosure frameworks. The SEC will require companies to disclose their direct and indirect greenhouse gas emissions and explain how climate-related risks are being integrated into governance and corporate oversight. The proposed rule will ensure investors have access to critical information about the carbon-intensity of the companies in which they invest and how those companies are managing their exposure to climate risk.
About Fiduciary Trust International
Fiduciary Trust International, a global wealth management firm headquartered in New York, NY, has served individuals, families, endowments and foundations since 1931. With over $86 billion in assets under management and administration as of June 30, 2022, the firm specializes in strategic wealth planning, investment management and trust and estate services, as well as tax and custody services. The New York-based firm and its subsidiaries maintain offices in Coral Gables, FL, Boca Raton, FL, St. Petersburg, FL, Radnor, PA, Lincoln, MA, Los Angeles, CA, San Mateo, CA, San Francisco, CA, Washington, DC, Wilmington, DE, Reston, VA, and Atlanta, GA. For more information, please visit fiduciarytrust.com, and for the latest updates, follow Fiduciary Trust International on LinkedIn and Twitter: @FiduciaryTrust.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers boutique specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives, and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately $1.4 trillion in assets under management as of August 31, 2022. For more information, please visit www.franklintempleton.com.
