SEC asks companies to divulge pollution and climate risks

SEC Chair Gensler Testifies Before Senate Banking Committee
Gary Gensler, Chair of the U.S. Securities and Exchange Commission, testifies before a Senate Banking, Housing, and Urban Affairs Committee oversight hearing on the SEC on September 14, 2021 in Washington, DC. | Photo by Evelyn Hockstein-Pool/Getty Images

The US Securities and Exchange Commission proposed new rules today that could require companies to update investors annually on how much planet-heating pollution they’re pumping out and how that pollution could ultimately affect their earnings.

A slew of companies from Apple to Amazon have pledged to become carbon neutral in coming decades. Consistent updates on how much pollution they generate help ensure that climate pledges aren’t just greenwashing or making false promises. The proposed rules are also supposed to protect investors as companies cope with disasters linked to climate change, like more extreme weather.

“We are concerned that the existing disclosures of climate-related risks do not provide investors with the detailed and...

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