Feb 14, 2022 - Economy

SEC boss on climate rule: We're getting there

Ben Geman

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."

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SEC boss on climate rule: We're getting there

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