On Thursday, U.S. Sen. Elizabeth Warren (D-MA) and U.S. Rep. Maxine Water (D-CA) led colleagues in urging the Securities and Exchange Commission to remain focused on the risk that climate change poses to investors.
In a letter, Warren, the chair of the Senate Banking Subcommittee on Economic Policy, and Water, the ranking member of the House Financial Services Committee joined 36 other lawmakers to urge the EC to enforce existing climate risk guidance and rules while its final climate risk disclosure rule is stayed, use every resource available to combat the legal challenges the rule is facing, and to implement the rule once the stay is lifted.
“Investors need access to climate risk disclosures that are reliable, standardized, and easily accessible to properly assess the risks associated with their investments,” the lawmakers wrote. “Climate change is transforming the economy, increasing mitigation and resilience costs and risks from weather and supply chain disruptions for all businesses.”
Lawmakers asked the SEC to state that it will ensure previous climate-related rules and guidance are thoroughly enforced. Additionally, lawmaker asked the SEC to remind issuers that U.S. companies that are subject to alternative climate-related disclosure regimes are also required to comply with those regimes, including those from California and the European Union, and those put forth by the International Sustainability Standards Board.
If the rule survives litigation, lawmakers urged the SEC to take steps to ensure the rule’s enforcement, including sharing guidance on how companies must conduct and disclose materiality assessments, and committing staff and resources to the implementation and enforcement of the rule.
The Congress members also urged the SEC to finalize a strong Environmental, Social and Governance (ESG) Disclosures for Investment Advisers and Investment Companies Rule to provide consistent standards for ESG disclosures that would give investors information with which to make informed decisions.