WASHINGTON—The Securities and Exchange Commission plans to propose rules mandating disclosure from publicly traded companies about climate change and associated risks in a meeting on March 21, the agency said Thursday.
The climate-change rules are among the most ambitious and closely watched items on SEC Chairman Gary Gensler’s agenda. They are likely to require companies to report more standardized information about their greenhouse-gas emissions as well as climate-related risks they face now and in the future, Mr. Gensler...
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WASHINGTON—The Securities and Exchange Commission plans to propose rules mandating disclosure from publicly traded companies about climate change and associated risks in a meeting on March 21, the agency said Thursday.
The climate-change rules are among the most ambitious and closely watched items on SEC Chairman Gary Gensler’s agenda. They are likely to require companies to report more standardized information about their greenhouse-gas emissions as well as climate-related risks they face now and in the future, Mr. Gensler has said.
Such vulnerabilities might include the potential for physical damage to companies’ operations from floods, wildfires or extreme weather events and potential new regulations designed to curb global warming.
Companies are currently required to report risks they consider material, or likely to be important in the eyes of a reasonable investor, including those stemming from climate change. Mr. Gensler, who was nominated by President Biden, has said such disclosures vary from firm to firm and are of limited use to investors.
If a majority of the SEC’s four commissioners vote to advance the proposal, the agency will take comments from the public, likely for at least 60 days, before moving to finalize a rule. The commission currently comprises three Democrats—all of whom have advocated for a climate-change rule—and one Republican, who has expressed skepticism.
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Republican lawmakers have sought to discourage the SEC from pursuing enhanced reporting around climate change, saying the agency is stretching its mandates to protect investors and facilitate access to capital for growing companies.
The business community, meanwhile, is divided. Energy and transportation companies have been preparing to fight the new rules. Tech firms like Apple Inc. and Microsoft Corp. have said they support the initiative.
Write to Paul Kiernan at paul.kiernan@wsj.com