Business, Economic, and Investment Analysis Used by 123 Organizations in Support of Mandatory SEC Climate Disclosure

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An example of our collaborative approach to supporting institutions in their transition to a low-carbon, sustainable, and equitable future, Responsible Alpha developed the business, economic, and investment analysis used by 123 environmental, indigenous rights, and racial justice organizations in their letter to the Honorable Gary Gensler, Chair, U.S. Securities and Exchange Commission on the proposed rule "The Enhancement and Standardization of Climate-Related Disclosures for Investors."

The Taskforce on Climate-Related Disclosures (TCFD), supported by over 345 U.S. organizations, highlighted in its 2016 report that “one of the most significant, and perhaps most misunderstood, risks that organizations face today relates to climate change.” 

Our analysis suggests investors need companies to disclose their climate-related financial risks and strategies for managing them, their greenhouse gas (GHG) emissions, their plans to remain viable or thrive in a low-carbon future economy, and their financial resilience across these dimensions, as it relates to and is in support of the communities where these companies exist, and their impacts are often felt and underreported. 

To further buttress and support this analysis, we wrote 12 business cases, one each on:

 

The issue is that voluntary disclosures of climate-related financial risks have not met this need. We believe that the Commission has the clear and specific authority as well as the responsibility to remedy this market failure and ensure that investors receive the consistent, comparable, and decision-useful information they need to assess public companies’ climate-related financial risks. 

Thus, we strongly support the proposal of the Securities and Exchange Commission to require mandatory, standardized, climate-related disclosures from public companies.

Read the full letter here.