On Monday, Sen. Elizabeth Warren [D-MA] introduced the Climate Risk Disclosure Act, which directs the SEC - in consultation with climate experts at other federal agencies - to issue rules within one year that require every public company to disclose:
- Its direct & indirect greenhouse gas emissions
- The total amount of fossil-fuel related assets that it owns or manages
- How its valuation would be affected if climate change continues at its current pace or if policymakers restrict greenhouse gas emissions to meet the Paris accord goal; and
- Its risk management strategies related to the physical & transition risks posed by climate change
The SEC would be required to tailor the disclosure requirements to different industries and impose additional disclosure requirements on companies engaged in the commercial development of fossil fuels.