Sherman Statement on SEC Proposed Rule on Public Company Climate-Risk Disclosures

Press Release

Today, Congressman Brad Sherman (D-CA), Chair of the House Financial Services Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, released the following statement on the Securities and Exchange Commission's publishing of new proposed rules to require increased climate-related disclosures for public companies:

"I applaud Chairman Gensler, Commissioner Lee, and Commissioner Crenshaw for the leadership they have shown in taking this significant step towards establishing climate-related disclosures for U.S. issuers. The various climate-based risks posed to businesses is a matter of growing interest to retail and institutional investors alike. Just last June, a group of 180 investors representing nearly $2.7 trillion in assets under management sent a letter to the Commission requesting just these sorts of disclosures be put in place.

"In February of last year, as Chair of the Investor Protection and Capital Markets Subcommittee, I held a hearing entitled, "Climate Change and Social Responsibility: Helping Corporate Boards and Investors Make Decisions for a Sustainable World.' During this hearing, we heard directly from the California Public Employees' Retirement System -- they and other investors increasingly view climate risk disclosures as crucial tools and material information for evaluating a company's financial performance.

"This is evidenced by the fact that reportedly up to 35% of total global carbon emissions can be accounted for by just 20 companies. We also see that the top 15 U.S. food and beverage companies each annually emit more greenhouse gases than the entire continent of Australia. These companies will face new and unique risks as the world continues to respond to the ongoing climate crisis, and their shareholders deserve to know whether or not they are prepared."

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