Statement of Mary Schapiro on the SEC’s Proposed Rules to Enhance and Standardize Climate-Related Disclosures for Investors

Climate risk is financial risk, and today’s announcement from the U.S. Securities and Exchange Commission (SEC) meets the longstanding demand from investors for transparency into how climate change is impacting the global economy.

The Task Force on Climate-related Financial Disclosures (TCFD) created a voluntary framework in 2017 designed to provide a lens into the financial system’s exposure to climate-related risk. At the time, few understood the real risks of a warming climate to companies. Since then, more than 3,000 organizations representing a market cap of over $28 trillion have supported the TCFD’s framework, and eight jurisdictions – including the UK and the EU – have announced reporting requirements based on the TCFD.

Through the SEC’s embrace of the TCFD framework, we are that much closer to providing investors with a consistent, comparable view into the financial impacts of climate change so they can make better-informed financial decisions. When markets have the information to accurately price the financial impacts of climate change, capital will shift towards businesses that prioritize climate resilience, transition, and sustainability.

There can be no healthy economy without a healthy planet, and the time has come for mandatory disclosure in the United States. I applaud Chairman Gensler and the SEC for this important step forward in aligning the U.S. to the rest of the world.