Monday, March 21, 2022

Statement from NYC Comptroller Lander on Proposed SEC Climate Disclosure Rule

 

Following the announcement by the U.S. Securities and Exchange Commission (SEC) of a proposed rule to require companies to disclose climate-related financial risk on Monday, New York City Comptroller Brad Lander issued the following statement:

“The climate crisis poses a clear risk to our economy, financial markets, and portfolios. Today’s announcement by the Securities and Exchange Commission is a strong step forward to help investors like the New York City Retirement Systems assess financial risks posed to companies by climate change.

“For too long, disclosure of climate risk information by publicly traded companies has been voluntary and without uniform standards. As a result, investors lack the information needed to evaluate the financial risks to their portfolios or potential investments posed by physical climate impacts like rising seas, floods, and wildfires, as well as policy impacts from companies and governments alike enacted to reduce emissions and exposure to climate threats.

“As a fiduciary to over 750,000 pension beneficiaries, I have a duty to consider and address the climate risks of our investments as well as the broader systemic risks that climate change creates for the global economy, as we work to navigate the transition to a low carbon economy. This proposed rule will provide shareholders with necessary decision-useful data to assess a company’s climate-related financial risk and encourage companies to evaluate the threats climate change poses to their fiscal health and sustainability.

“Thank you to SEC Chair Gary Gensler, and to the SEC Commissioners and staff for extensive consultation, research, and development of this rule. I look forward to continued dialogue with regulators, fellow institutional investors, and companies covered by the rule.

“My office plans to review the proposed rule along with the other trustees of the New York City Retirement Systems, and to submit comment to support and strengthen this rule in the coming weeks.”

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