June 14, 2021

Casten, Warren Submit Comments to SEC To Require Public Companies to Disclose Climate Related Risk

WASHINGTON, DC – U.S. Congressman Sean Casten (D-IL) and Senator Elizabeth Warren (D-MA) submitted a comment letter to the U.S. Securities and Exchange Commission (SEC)'s request for public comment on climate disclosures, highlighting several climate-related financial priorities for the Commission to consider.

The letter, submitted to the SEC on Friday, detailed the severity of the threat of climate change in our financial system, specifically our U.S. capital markets. The current voluntary framework is not sufficient for investors to fully understand the risk they are exposed to. In their letter, Casten and Warren made the case for why the SEC's review and further action is needed. Casten looks forward to continuing to work with the SEC as they review comments and take action accordingly.

Congressman Casten said, "From the wildfires, droughts, blackouts, and superstorms that've already caused over $500 billion in damages in the past four years to rising sea levels and crop failures, the climate crisis is causing real, measurable declines in our economic output and increased systemic risk. Despite the escalating calls for action from scientists, economists, business leaders, and investors, the U.S. is far behind our global partners in safeguarding our financial system against this grave and imminent climate threat. The SEC must mandate climate risk disclosure for public companies—establishing clear, easily comparable climate disclosure standards that will empower investors to make smarter decisions, reduce the risk of environmental and financial catastrophes, and harness the power of free markets to ease the transition from fossil fuels to cleaner, cheaper energy sources."

"It is time to fight back against giant corporations that want to pollute our environment and ask taxpayers to clean up the mess," said Senator Warren. "That is why we are pushing to give investors and the American public more power to hold corporations accountable for their role in the climate crisis."

Full text of the comment letter is available here.

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