PWYP-US welcomes SEC rulemaking as a landmark opportunity for greater transparency on climate-related financial risks
Today, after a vote of 3 to 1, the U.S. Securities and Exchange Commission (SEC) released its proposed rule for climate-risk disclosure. This rulemaking is a critical opportunity to ensure publicly-listed companies disclose information about climate-related financial risks and their strategy to manage these risks responsibly.
Below is a statement from Carly Oboth, Director of Publish What You Pay – US:
“We commend the SEC for its leadership in calling for greater transparency as global markets transition away from its historic reliance on fossil fuels in order to limit global warming in line with the Paris Climate Accords. Mandatory reporting requirements for companies help level the playing field, providing investors, governments, civil society groups, and other stakeholders with complete, consistent, and comparable information about the profound financial and transition-related risks of the climate crisis.
Over the last decade, our coalition has championed a payment transparency requirement for oil, gas, and mining companies that has now been adopted in several major capital markets. We have seen how the disclosure of payments for extractive deals has enabled communities in resource-rich countries to track revenue flows, prevent corruption, and demand accountability in oil and mineral revenue management. We have also seen the utility of these disclosures for investors, who have repeatedly supported consistent disclosure rules to inform their investment decision-making with quality data that is comparable across corporate issuers.
In the same way, company disclosures on climate-related financial risks can also be used to better understand how companies are approaching climate-related risk and meeting targets for promised reductions of greenhouse gas emissions and other critical climate goals.
The SEC’s rulemaking is a valuable opportunity to encourage greater transparency for investors, particularly as it relates to climate-related risks in the fossil fuel sector. We look forward to supporting the SEC’s efforts to deliver a strong rule.”