Washington—Senator Dianne Feinstein (D-Calif.) today released the following statement on the Securities and Exchange Commission’s proposed rule that would require public companies to report their greenhouse gas emissions:

“I’m pleased the SEC is proposing a rule that would require public companies to disclose information regarding their greenhouse gas emissions. Investors have said they need to know the climate risks created by publicly traded companies, and this proposed rule will help in that effort.

“We can’t afford to keep ignoring the threats that climate change pose to our world, including to our financial system. The costs are too high, and they are already visible. In California, we are seeing the devastation created by intense wildfires and extreme droughts.

“We must continue to reduce our carbon emissions. But we must also address the strain that climate change places on our financial system, including a thorough understanding of emissions that result from a company’s activities. Today’s proposed rule will help in that effort by requiring more transparency and consistent reporting.”

Background: 

• In August, Senator Feinstein called on the SEC to require companies to publicly disclose their climate financial risk.
  
  
• In March 2021, Senator Feinstein and Representative Sean Casten (D-Ill.) introduced the Addressing Climate Financial Risk Act, a bill that would improve the ability of federal regulators to understand and mitigate risks from climate change within the financial system.
  
  
• Federal financial regulators have already announced that they will implement many of the bill’s provisions, including creating a climate risk advisory committee on the Financial Stability Oversight Council and updating guidance for financial institution examiners on how to assess climate financial risk.