SEC Meets Market Conditions with Climate-Related Disclosure Proposal
The meeting place between market demands and market oversight don’t always happen smoothly. Sometimes, one is considered onerous to the other, and vice versa. That’s likely not the case with a new proposal from the SEC, which includes:
“… that would require registrants to include certain climate-related disclosures in their registration statements and periodic reports, including information about climate-related risks that are reasonably likely to have a material impact on their business, results of operations, or financial condition, and certain climate-related financial statement metrics in a note to their audited financial statements.”
That’s an over-long, typically worded messaging from the Securities and Exchange Commission, but it dovetails with market demands of not only disclosure and transparency, but also of evidence of climate-related practices by corporations. (Speaking of wordy, the IOSCO’s got nothing on the SEC.)
Climate offsets (or set-asides), electric cars, trucks and fulfillment fleets, solar roofing for residential and commercial real estate – all are quickly moving beyond marketing buzzwords and real-issue concerns for customers, as well as corporations.