.jpg)
The U.S. Securities and Exchange Commission ("SEC") today issued guidance to public companies regarding the Commission’s disclosure requirements under existing law concerning matters relating to climate change.
Attorney General Andrew M. Cuomo said, “The SEC's action reinforces our position that carbon-intensive industries have an obligation to inform investors of the material risks that climate change may pose to their companies. I will continue to use my authority to make sure companies that emit large amounts of global warming pollution disclose the full financial risks of doing so - as such practices benefit both the marketplace and the environment over the long term. The guidance issued by the SEC today is an important step in that direction.”
Background: Today's action responds to a 2007 petition jointly filed by Attorney General Cuomo and a broad coalition of state officials, institutional investors and conservation organizations requesting that the SEC issue an interpretive release clarifying that material climate-related information must be included in corporate disclosures under existing law.
Today’s action by the SEC comes on the heels of Attorney General Cuomo’s ground-breaking settlements with three energy firms - the first-ever binding and enforceable agreements requiring the disclosure of financial risks that climate change poses to its investors. The settlements with Xcel Energy, Dynegy and AES Corporation require each company to provide a broad disclosure and analysis of material risks associated with climate change in its “Form 10-K” filings, the annual summary report on a company’s performance required by the Securities and Exchange Commission (“SEC”) to inform investors.
