SEC asked to supply disclosure guidance

Institutional investors have called on the US Securities and Exchange Commission (SEC) to introduce rules requiring firms to report on their climate risk exposure.

The Ceres sustainable investors group has issued a supplemental petition urging the watchdog to provide “interpretive guidance” on how businesses should disclose climate-related risks.

It was signed by 20 institutional investors with more than $1tn in assets under management, and calls on the SEC to provide guidance to firms detailing how climate-related risks such as carbon regulations, environmental impacts and new business opportunities and threats qualify as “material risks” and therefore should be disclosed in quarterly and annual reports.

“Climate change is without question a material risk to businesses, and ignoring it is a disservice to investors,” said Mindy Lubber, president of Ceres. “We need to disclose these risks so that both investors and companies can make financially sound decisions.”