Consumer Federation of America backs SEC in attempt to require companies to disclose climate impacts
The Consumer Federation of America (CFA) announced its support this week for a proposal released by the Securities and Exchange Commission (SEC) that would require businesses to disclose climate-related risks and climate-warming activities.
Specifically, CFA submitted comments to the SEC explaining their support of the proposed measure.
In a statement, representatives of the CFA noted that the proposed changes will benefit investors and could help protect the planet.
“We are pleased to support this proposal to enhance and standardize climate-related disclosures for investors, and we are encouraged that the SEC is one step closer to providing investors with the climate-related information they need to make informed investment decisions,” said Dylan Bruce, CFA’s Financial Services Counsel.
In CFA's comments, the group noted that investors will be protected and oversight of businesses with significant climate impact will be improved. So, the groups suggests, the benefits of the proposal extend beyond investor protection to a better environment.
The comments note:
“Investors need this information to make fully informed capital allocation decisions, to manage their portfolio risks, and to engage effectively in the oversight of the companies whose shares they own,” and “without adoption of the Proposed Amendments, investors would continue to remain hamstrung from fully considering or understanding the climate-related risks that may impact their investments.”
“Taking these steps is not only well within the Commission’s authority, but also essential if the Commission is to fulfill its public interest mission to protect investors, promote fair, orderly, and efficient markets, and facilitate capital formation,” CFA’s comment adds.