In response to the Security and Exchange Commission's (SEC) open meeting on the draft rule for the disclosure of climate-related financial risk, Evergreen Action Chief of Staff Lena Moffitt released the following statement: 

“There's no doubt that the climate crisis is an emerging and present threat to our financial institutions, and regulators need to step up to safeguard working families and investors. The Security and Exchange Commission’s new draft rule for climate risk disclosure is an important first step to fulfill its mandate to protect investors and capital markets. For too long, Wall Street has been allowed to conceal its exposure to climate-related risks from investors, leaving many Americans completely in the dark about a major threat to the long-term security of their life savings. By setting a clear standard for businesses to disclose data about their greenhouse gas emissions and climate risky assets, this rule will level the playing field and arm investors with vital information to protect their financial futures. We applaud Chair Gary Gensler for correcting this market deficiency as part of the SEC’s ongoing mission to protect Americans.

“But this rule can and should be strengthened. Leaving it up to issuers to determine the materiality of Scope 3 emissions, and shielding those issuers from liability for providing false information, would allow issuers to omit the majority of their emissions from their disclosures. We will continue to engage through the comment period to ensure the final rule establishes a clear Scope 3 requirement, and look forward to the SEC’s continued efforts to address the systemic threat to our economy posed by the climate crisis.”

For more information on how the climate crisis threatens the stability of our entire financial system, read the explainer here.

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