Attorney General William Tong has called on the U.S. Securities and Exchange Commission to require U.S. companies to provide in-depth information on how climate change contributes to their financial risk.
Federal law does not require U.S. companies to include climate change-related disclosures in their financial statements. Tong, who is joining a coalition of 11 state attorneys general, asked the SEC to mandate these disclosures for both public and private companies, with a specific focus on the level of the companies”™ greenhouse gas emissions.
Tong stated that climate change-related weather events have cost U.S. companies more than $600 billion in direct economic damages over the past five years.
“This is a crucial step to protect Connecticut investors and shield our financial institutions from the devastating consequences of climate change,” Tong said. “Full transparency around climate risks will strengthen our economy”™s resilience.”
Nothing like having an onerous regulation slapped on you and your struggling company. Can we figure out the cost this will have on small businesses 1st? Why isn’t there a cost-benefit analysis?
Disclosure requirements will yield nothing at great cost to businesses and they’d be far better off using that money to hire more employees or provide more training.