The head of the US Securities and Exchange Commission (SEC) has hinted that mandatory climate disclosure by corporates is needed to provide investors with the information they need.
In another sign that the world’s biggest financial market will move to introduce reporting requirements, the SEC’s Acting-Chair, Allison Herren Lee, said yesterday: “Investors are demanding more and better information on climate and ESG, and that demand is not being met by the current voluntary framework. Not all companies do or will disclose without a mandatory framework, raising the cost, or resulting in the misallocation, of capital”.
In the speech, given at the Center for American Progress, she also announced that the regulator is calling on the market for input on whether its current disclosure regime is fit for purpose on climate.
US president Joe Biden appointed Herren Lee as Acting Chair of the regulator in January. According to a statement accompanyi…