27. Community Bank Affinity Groups on Climate Disclosure
Community Bank Affinity Groups Weigh-In on Prospect of SEC Climate Disclosure Rulemaking
For almost a year, the U.S. Securities and Exchange Commission (“SEC”) has been grappling with the prospect of mandatory climate disclosure rulemaking and soliciting public comments.
As the SEC weighs industry and public reaction in preparation for its proposal, Chairman Gensler has expressed concern about the wide range of feedback and potential legal challenges to new mandates. The conflict is over how much climate-related information the SEC can require companies to report.
While we await the anticipated SEC climate disclosure rulemaking, Sunwealth took a closer look at the divergent views on mandatory climate disclosure submitted by several Community Bank Affinity Groups.
Here is what they have to say:
Excerpt from EBA’s Comment on Prospective SEC’s Disclosure Requirements
“The EBA supports the overall inclusion of climate-change disclosure in already existing Annual Reports, ESG reports, etc. Our industry approaches Climate as a risk that must be assessed, calculated, evaluated, and managed / mitigated, as needed.”
Excerpt from BPI’s Comment on Prospective SEC’s Disclosure Requirements
“BPI supports consistent and meaningful climate disclosures. If the SEC requires additional climate disclosures, it should require those disclosures outside of existing securities filings. In implementing disclosure requirements in the United States, the SEC should ensure it is acting in line with, and not beyond, its core investor protection mandate.”
Excerpt from Green America Comment on Prospective SEC’s Disclosure Requirements
“The current gaps in corporate (climate) disclosures put investors and stakeholders at a disadvantage, with each corporation largely determining what climate risks and scenarios to report and different companies using different methodologies to provide these disclosures. Rulemaking from the SEC requiring standardized corporate disclosures is needed to fill this gap.”
Excerpt from APA’s Comment on Prospective SEC’s Disclosure Requirements
“ABA supports the Commission’s efforts to undertake this initiative. A deliberate and sensible climate risk disclosure regime should contribute to effective climate risk mitigation and capital allocation throughout the economy. Information about climate-related financial risks and opportunities will allow lenders and investors to more effectively assess, price, and manage risk and allocate capital.”
Excerpt from ICBA’s Comment on Prospective SEC’s Disclosure Requirements
“The SEC should not politicize the agency and jeopardize its independence by taking a position on climate change and requiring annual disclosures of climate risks by all SEC filers. Instead, the agency should continue with its voluntary disclosure regime, complete its review of the 2010 Climate Change Guidance… and make appropriate changes where the guidance needs to be updated or clarified.”
For access to all public comments: https://www.sec.gov/comments/climate-disclosure/cll12.htm
Learn more about how Sunwealth could put your money to work by reaching out to Darreck Mitchell, Director of Capital Markets at darreck@sunwealth.com.
Andrew Hollander joined Sunwealth as an Associate shortly after graduating from Bentley University. He is amped to put his degree to work and motivated to create a clean energy future for all. When he’s not managing solar assets, he can be found watching Seinfield or spending time with friends and family.