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Responsible Alpha's SEC Climate Risk Research Used by 123 Institutions

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Click here to read the SEC comment letter Responsible Alpha contributed to

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.” 

Responsible Alpha's 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, Responsible Alpha wrote 12 business cases, one each on:

The issue is that voluntary disclosures of climate-related financial risks have not met this need. 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. 

Responsible Alpha and the 123 institutions who signed onto this research note strongly support the proposal of the Securities and Exchange Commission to require mandatory, standardized, climate-related disclosures from public companies.

Click here to read the SEC comment letter Responsible Alpha contributed to

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