Under a new US Securities and Exchange Commission (SEC) proposal public companies will have to divulge their greenhouse gas emissions.
The SEC proposed a rule on Monday that companies are required to disclose their emissions and climate-related risks produced from their industries.
The information to be disclosed include greenhouse gas emissions and the physical impact of natural calamities caused by global warming. Plans implemented to manage climate risk and its impact on their finances are also required to be provided, according to the SEC.
The information disclosure poses a good chance for investors to analyze the risk management followed by different companies before investing in them.
What’s next for the proposal?
The SEC has decided to allow public comment on the rule for 60 days to incorporate any modification before the final draft.
Though the proposal seemed to gain support from various fronts, a handful of corporate groups and Republicans are opposing the proposal creating an obstacle for the SEC.
Large companies will be starting disclosures next year, if the rule is approved.
