Companies would be required to disclose their greenhouse gas emissions and be held to account for their climate promises under a proposal published Monday by the Securities and Exchange Commission.
The proposed rule would deliver a big — and durable — policy win for President Joe Biden, whose climate agenda has been mired in congressional partisanship and overshadowed by economic and geopolitical crises.
The rule would generate detailed information on how corporations, financial services firms and other businesses are being affected by climate change. It would force executives to explain how they’re coping with extreme weather, supply chain disruptions and other climate-related upheavals. It follows years of shareholder demand for more information and an admission by the SEC that existing requirements are inadequate.