SEC's Climate Disclosure Rule Proposal Explained
IBM News, Friday, June 2,2023
The Securities and Exchange Commission (SEC) has issued a rule proposal to standardize the way organizations make climate-related disclosures.
The rule proposal would require US publicly traded companies to disclose annually how their businesses are assessing, measuring and managing climate-related risks. This would include disclosure of greenhouse gas emissions as a measure of exposure to climate-related risk.
The proposed rule would standardize climate-related disclosures for investors, allowing them to clarify exposure to risk and potential impact on the business operations or financial condition of the organization they are investing in.