Reed, Schatz, & Cartwright Lead Bicameral Letter Urging SEC to Enforce Climate Change Guidance

Press Release

Today, U.S. Senators Jack Reed (D-RI) and Brian Schatz (D-HI), U.S. Representative Matt Cartwright (D-PA), and 32 of their colleagues sent a bicameral letter to Securities and Exchange Commission (SEC) Chair Mary Jo White to request an update on the SEC's efforts to implement the "Commission Guidance Regarding Disclosure Related to Climate Change," which seeks to elicit greater transparency for investors on the material risks posed by climate change.

"The effects of climate change can pose material and evolving challenges for many companies and investors deserve access to complete and accurate information. Our markets work best when investors have access to reliable information, and we should have every confidence that the SEC is robustly enforcing the disclosure regulations on the books," said Senator Reed, a senior member of the Senate Banking Committee.

"Under the law, investors have a right to know what risks publicly traded companies may face, including risks from climate change," said Senator Schatz. "The political impasse surrounding climate action does not make climate change any less of a risk to businesses nor any less important that the SEC ensure these risks are lawfully disclosed."

"The increasing physical effects of climate change--from more extreme storms to rising sea levels--have the potential to have a dramatic material effect on business and operations," said Representative Cartwright. "Failing to disclose these liabilities obscures the true state of a company. Increasing compliance with the current guidance will help investors, business owners, and regulators more accurately assess company strength."

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