NEW: Kevin Stiroh, of the Federal Reserve Bank of New York, and co-chair of the Basel Committee on Banking Supervision’s Task Force on Climate-related Financial Risks (TFCR), which is part of the work of the Basel Committee on Banking Supervision, discussed the Committee’s investigation of climate change risk and financial stability implications for the banking system in The Basel Committee’s Initiatives on Climate-Related Financial Risks.
Cooley discusses SEC Commissioner Allison Herren Lee’s speech highlights how the role that the SEC plays in protecting investors, facilitating capital formation, and maintaining markets intersect with climate change, which she characterizes as a systemic risk, in SEC Commissioner Lee: SEC must address systemic financial risk posed by climate change.
SEC Commissioner Allison Herren Lee discusses climate change risk as having “more grave human and economic costs” than the coronavirus pandemic, and the SEC’s role as involving working with other regulators to understand and address systemic economic risk posed by climate change in Playing the Long Game: The Intersection of Climate Change Risk and Financial Regulation.
D&O Diary’s Kevin LaCroix discusses SEC Commissioner Allison Herren Lee’s speech warning that climate change poses systemic risk to markets and the economy, and its implications for corporate disclosure in Climate Change as a “Systemic Risk”: Markets, Regulation, and Disclosure.
Columbia University’s Millstein Center, in cooperation with LeaderXXchange (“a purpose-driven organization that advises and promotes diversity and sustainability in governance, leadership & investment”) released the results of a survey of directors and investors illustrative of demographic and regional differences in expectations regarding climate-related issues and disclosure, in Global Investor-Director Survey on Climate Risk Management.
Majority Action discusses contributions, or lack thereof, of the world’s 12 largest asset managers in holding companies accountable for combatting climate change and risks climate change pose to long-term shareholders and other stakeholders in Climate in the Boardroom – How Asset Manager Voting Shaped Corporate Climate Action in 2020.
Davis Polk discusses the U.S. Commodity Futures Trading Commission’s report — Managing Climate Risk in the U.S. Financial System — which explains disruption to the U.S. economy expected if U.S. financial systems and market participants fail to address and adapt to climate risks, in CFTC Identifies Climate-Related Financial Risks and Urges Action from Financial Regulators and Legislators.
Cooley discusses the Business Roundtable’s issuance of principles and policies regarding corporate action on climate change in The Business Roundtable shifts position on action to address climate change.
The Business Roundtable discusses its release of Addressing Climate Change – Principles and Policies proposing a market-based strategy to incentivize development and use of technologies for reduction of greenhouse gas emissions in Market-Based Solutions Best Approach to Combat Climate Change.
The Wall Street Journal discusses the Business Roundtable’s support for measures to slash greenhouse gas emissions, and issuance of principles for support of that goal in Business Shifts From Resistance to Action on Climate.
Changing Expectations for Financial Disclosure of Climate-Related Information discusses changing conceptions of what constitutes a “reasonable investor” and how companies make materiality determinations with respect to disclosures of climate-related information.
Columbia Law School’s Millstein Center discusses demographic and regional differences in directors’ and investors’ expectations around climate-related issues and disclosure and how boards and companies are engaging on climate issues internally and externally in The Results Are in: Global Investor-Director Survey on Climate Risk Management.
Cooley discusses statements by SEC Commissioners regarding the issue of climate disclosure, noting that the debate should be understood in the context of increased investor interest in sustainability disclosure, and challenges created by the absence of common standards for Environmental, Social, & Governance reporting, in SEC debate on climate disclosure regulation gets heated.
Cleary Gottlieb reports that the SEC chose not to include specific disclosure requirements on climate change or other Environmental, Social, & Governance issues in proposed amendments to Management Discussion and Analysis regulations in SEC Maintains the Status Quo on Climate Change Disclosures.
Commissioner Allison Herren Lee of the Securities and Exchange Commission objects to the Commission’s failure to address disclosure around climate change risk in its recent proposed amendments to Regulation S-K disclosure requirements in Statement by Commissioner Lee on “Modernizing” Regulation S-K: Ignoring the Elephant in the Room.
Davis Polk reports that SEC Chairman Jay Clayton issued a January 30, 2020 statement supporting proposed amendments to financial disclosure requirements, noting that the statement includes additional, unrelated Discussion of Environmental and Climate-Related Disclosure Efforts, which is summarized in SEC Chairman Releases Statement on Proposed Changes to Financial Reporting and Discusses Climate-Related Disclosure.
McKinsey discusses socioeconomic risks attributable to clime change, and considerations for companies and governments Integrating climate risk into decision-making in Climate risk and response: Physical hazards and socioeconomic impacts.
Cooley discusses a McKinsey study of the economic effects of climate change as a possible impetus supporting increased focus of financial investors on issues of sustainability in McKinsey looks at socioeconomic impact of climate risk.