SEC Urged To Require Global Warming Risk Disclosure

NWF   |   July 29, 2008

Investors and legislators are urging the government to adopt a policy that
would require publicly traded companies to disclose financial risks associated
with global warming.

Senate Appropriations
included language in the Financial Services Appropriations Bill
that calls on the Securities and Exchange Commission (SEC) to issue climate
change guidance to certain businesses. State treasurers, pension fund managers
and institutional investors filed a petition last September urging formal rules
on this type of corporate disclosure.

“Climate change has broad
implications for the marketplace that could significantly impact companies’
future earnings and, if not accurately disclosed, could impair investors’
ability to make sound decisions,” said
Senator Jack Reed, D-R.I

In the name of ethics and
transparency, certain industries which are particularly susceptible to the
effects of global warming—such as automakers and insurance companies—should
assess and expose their risk to investors.

“Information on
climate-related risks that companies are providing is not adequate and at the
level investors need to make informed investment decisions,” said Mindy Lubber,
President of Ceres, a coalition
of investors, companies, and nonprofit groups working on corporate environmental
. NWF is a member of the Ceres coalition.

Published: July 29, 2008