Washpost: SEC to require disclosure of climate change risks

Yet another technical hurdle has been crossed with this SEC resolution. It will make climate change consideration a norm, a concern for the shareholders, and reduction a responsibility of the management.

Washpost: SEC to require disclosure of climate change risks

The commission, in a 3 to 2 vote, decided to require that companies disclose in their public filings the impact of climate change on their businesses -- from new regulations or legislation they may face domestically or abroad to potential changes in economic trends or physical risks to a company.

Schapiro said companies already must disclose anything that can have a significant effect on their bottom lines. But she said the SEC's action on Wednesday was intended to provide more guidance on what might be taken into account. "The commission is not making any kind of statement regarding the facts as they relate to the topic of climate change or global warming," Schapiro said.

A number of large institutional investors had been urging the SEC to put more pressure on companies to disclose more details about the effects of climate change on their businesses.