Sustainable Investment Caucus Applauds SEC Climate Rule
WASHINGTON, D.C. (March 6th, 2024) – Today, Rep. Juan Vargas (CA-52) and Rep. Sean Casten (IL-06) , co-chairs of the Congressional Sustainable Investment Caucus, released the following statement regarding the SEC’s finalized rulemaking requiring companies to disclose climate-related financial risks:
“The climate rule approved by the SEC today ensures investors have access to clear, comparable, and standardized disclosures to judge registrants’ climate risks. Climate change remains a threat to the stability of the financial system, and this serves as a market-based solution to better understand the impact it has on publicly traded companies. This rule should be cheered by all who value capitalism, investor protection, and market transparency.
“2023 saw at least 28 climate change-driven disasters that caused at least $1 billion in damage each. The frequency of these events is consistently increasing. We know corporations believe climate change poses a risk to their businesses – that’s why they spend, on average, $500,000 a year to assess these risks. Investors have a right to this information.
“We applaud the SEC for undergoing a rigorous and thorough process to develop a final rulemaking that is grounded in financial materiality, aligns with the demands of investors and market participants, and is clearly within the SEC’s mission, authorities, long-standing norms, and responsibilities.”
Rep. Vargas alongside Rep. Casten first introduced the Climate Risk Disclosure Act in the 116th Congress to direct the SEC to require publicly traded companies to disclose climate-related financial risks. The legislation passed the House in the 117th Congress as part of Rep. Vargas’ Corporate Governance Improvement and Investor Protection Act. Following the passage of the bill in the House, the SEC undertook the rulemaking to develop a strong and durable climate disclosure rule.
The Congressional Sustainable Investment Caucus is holding a press conference on the SEC’s Climate Rule at 3pm ET on Wednesday, March 6th. The press conference will be livestreamed on Facebook and Twitter at @RepJuanVargas.
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