SEC Chair Gensler Explains Support for Mandatory Climate Disclosures

In remarks before the Ceres Investor Briefing, SEC Chair Gary Gensler explained his support for the SEC's proposal to mandate climate-risk disclosures for public companies, saying it was based on the SEC's long history of requiring public companies to "provide full and fair disclosure" to investors.

Mr. Gensler emphasized that many companies and countries have either built upon or incorporated the Task Force on Climate-related Financial Disclosure framework into their respective reporting regimes. He noted that investors are aware that climate risks also pose financial risks to companies that are needed to make informed investment decisions. He further stated that investors are already making decisions on climate-risk information and that companies are disclosing this information, adding that the SEC proposal builds on this and will enhance the "decision-usefulness of these disclosures for investors."

Mr. Gensler encouraged all issuers and investors to provide comments on the SEC's recently proposed rule.