Proposed rules are designed to make it easier for investors to understand climate-related risks  

The US Securities and Exchange Commission has proposed rule changes that would require listed businesses to include climate-related disclosures in their registration statements and periodic reports.

This includes information about climate-related risks that are likely to have a material impact on their business.

“I am pleased to support today’s proposal because, if adopted, it would provide investors with consistent, comparable, and decision-useful information for making their investment decisions, and it would provide consistent and clear reporting obligations for issuers,” said SEC chair Gary Gensler.

“Our core bargain from the 1930s is that investors get to decide which risks to take, as long as public companies provide full and fair disclosure and are truthful in those disclosures.

”Today, investors representing literally tens of trillions of dollars support climate-related disclosures because they recognise that climate risks can pose significant financial risks to companies, and investors need reliable information about climate risks to make informed investment decisions.”