Praxis welcomes the SEC’s proposed climate disclosure rule
SEC’s draft rule requires companies to measure and disclose climate risk
Praxis Mutual Funds welcomes the SEC’s recently proposed climate disclosure rule. Over the past two years, we have advocated for this kind of mandatory climate risk disclosure.
Investors need companies to measure and disclose climate risk in a consistent and comparable fashion to better understand how they are integrating it into their business models.
The proposed rule doesn’t create climate policy – that’s the role of the legislative branch. The proposed rule simply provides pertinent information for investors, who are increasingly demanding it.
The SEC’s draft rule mandates that companies disclose information relating to their climate-related risk management, strategy and governance; the impact of climate change on companies’ financial statements; details and assumptions backing public climate commitments; and finally, greenhouse gas emissions reporting.
About a third of annual reports submitted to the SEC in 2019 and 2020 already included some disclosures on climate.
The public has up to 60 days after the proposed rule’s publication on the SEC's website or 30 days upon publication in the Federal Register – whichever period is longer – to submit comments on the plan. We'll be monitoring closely and continuing to advocate for companies to provide adequate climate risk disclosures.