Climate change risk disclosures are one way to hold corporations accountable for their role in the climate crisis. They’re also an important tool to help investors understand their investments and how they could be affected by climate change. Requiring better disclosure of climate change risks could push investors and corporations to take more action to address climate change.
Even without regulators’ intervention, many companies are already making their own climate change disclosures. The industry-led Task Force on Climate-related Financial Disclosures (TCFD) has released recommendations on this issue and is tracking companies’ adoption of its recommendations. Investors, such as BlackRock, are also encouraging greater disclosure. There’s no need for the SEC to get involved.