SEC boss on climate rule: We're getting there
Securities and Exchange Commission chairman Gary Gensler said he's working with other commissioners on details of a draft climate risk disclosure mandate — and he's dropping fresh hints about its direction.
Why it matters: The rule is part of a wider push by Biden-appointed financial regulators to expand analysis and disclosure of risks to various kinds of companies.
Driving the news: Gensler's posted a Twitter thread Friday that comes as he's under pressure to unveil the plan initially slated for release by the end of 2021.
- Bloomberg reported that the SEC's Democratic majority is divided over the structure of the closely watched proposal.
The big picture: Gensler said it should enable investors to make apples-to-apples evaluations.
- "Like the Olympics, fans compare skiers across heats, countries, & generations. Investors today are asking for the ability to compare companies w/ each other," he tweeted.
- He stressed the need for "sufficient quantitative & qualitative detail" because "generic boilerplate" isn't helpful.
The intrigue: Environmentalists want the SEC to require detailed disclosures about companies' reliance on emissions offsets to meet climate targets.
- A new letter to the SEC from the Sierra Club and Public Citizen says offset markets have "significant environmental, accounting and social integrity problems that jeopardize fulfillment of corporate climate pledges."