3 Ways Climate Change Disclosures Would Benefit Investors

Publicly traded companies might soon have to report how they manage climate risk – and their own greenhouse gas emissions.

The SEC logo on the side of a building
(Image credit: Getty Images)

The Securities and Exchange Commission in March released guidance for publicly traded companies on the links between their businesses and climate change – a boon for investors, regardless of whether they’re concerned with environmental, social and governance (ESG) criteria.

Proposed SEC rules would require a number of new disclosures. For instance, companies would have to reveal any financial risks related to climate change. They also would be compelled to include details about corporate greenhouse gas emissions, which are a globally recognized way of measuring a company’s contribution to climate change. The SEC also wants a discussion of how companies are managing climate risk.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Ellen Kennedy
Personal Finance Editor, Kiplinger.com

Ellen writes and edits personal finance stories, especially on credit cards and related products. She also covers the nexus between sustainability and personal finance. She was a manager and sustainability analyst at Calvert Investments for 15 years, focusing on climate change and consumer staples. She served on the sustainability councils of several Fortune 500 companies and led corporate engagements. Before joining Calvert, Ellen was a program officer for Winrock International, managing loans to alternative energy projects in Latin America. She earned a master’s from the U.C. Berkeley in international relations and Latin America.