The Securities and Exchange Commission (SEC) announced Wednesday that it will update its guidelines on how publicly traded companies should disclose climate change-related risks to investors, The Hill reported. Acting SEC Chair Allison Herren Lee said in a Wednesday statement that the commission will review how companies were complying with its 2010 guidelines, discuss climate-related disclosures with firms and analyze how the stock market is handling climate risks. The SEC will then update those guidelines, likely expanding on how much information companies are expected to disclose about the risks climate change poses to their business. “Now more than ever, investors are considering climate-related issues when making their investment decisions. It is our responsibility to ensure that they have access to material information when planning for their financial future,” said Lee, a Democrat appointed by former President Trump. Lee’s announcement is the SEC’s first step toward expanding the scope of information publicly traded companies are expected to reveal about their vulnerability to climate change. The SEC was widely expected to boost its emphasis on climate-related disclosures after President Biden’s election, which gave Democrats a chance to establish a majority at the independent agency.
