{"id":275735,"date":"2021-06-16T04:28:00","date_gmt":"2021-06-16T01:28:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ceos-want-sec-climate-reporting-separate-from-earnings-but-concede-new-rules-are-likely\/"},"modified":"2021-06-16T04:28:00","modified_gmt":"2021-06-16T01:28:00","slug":"ceos-want-sec-climate-reporting-separate-from-earnings-but-concede-new-rules-are-likely","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ceos-want-sec-climate-reporting-separate-from-earnings-but-concede-new-rules-are-likely\/","title":{"rendered":"#\n  CEOs want SEC climate reporting separate from earnings but concede new rules are likely"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3c574a83ddc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3c574a83ddc\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ceos-want-sec-climate-reporting-separate-from-earnings-but-concede-new-rules-are-likely\/#Republican_lawmakers_tell_Gensler_to_leave_climate_change_to_legislation_not_regulation\" >Republican lawmakers tell Gensler to leave climate change to legislation, not regulation<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ceos-want-sec-climate-reporting-separate-from-earnings-but-concede-new-rules-are-likely\/#Rachel_Koning_Beals\" >Rachel Koning Beals<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  CEOs want SEC climate reporting separate from earnings but concede new rules are likely<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Republican_lawmakers_tell_Gensler_to_leave_climate_change_to_legislation_not_regulation\"><\/span>\n  Republican lawmakers tell Gensler to leave climate change to legislation, not regulation<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000306396\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       CEOs at the powerful Business Roundtable, investor groups and mostly Democratic lawmakers told the Securities and Exchange Commission they\u2019d support mandatory rules forcing publicly traded companies disclose detailed greenhouse gas emissions and other figures that reveal the climate-change impacts and risks to investors.<\/p>\n<p> One of the biggest asks from companies is for the SEC to separate climate reporting from earnings and other disclosures. And some commenters are worried about <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lying the same rules to smaller companies as large ones.<\/p>\n<div class=\"paywall\">\n       Fossil fuel concerns, meanwhile, want a role in shaping the reporting requirements, while Republican lawmakers on banking and financial services panels said legislation, and not regulation, should address climate change.<\/p>\n<p>The SEC\u2019s climate disclosure effort \u2014 a\u00a0priority for Chairman Gary Gensler\u00a0and the commission\u2019s 3-2 Democratic majority\u00a0\u2014 has just closed its public-comment period, receiving about 300 letters. It is expected to pursue rulemaking in the second half of the year.<\/p>\n<p>The  SEC issued guidance in 2010 on how companies should voluntarily report their exposure to risks related to climate change.\u00a0But now, President Joe Biden this spring directed the Financial Stability Oversight Council, which includes the SEC, to address required climate disclosures.<\/p>\n<p>\u201cDisclosure rates are improving, but we still find that companies only disclose on about two thirds of material topics,\u201d Aron Szapiro, head of policy research at Morningstar, and his team wrote in recent research. \u201cRegulatory mandates improve consistency, quality and completeness of disclosures, and would not be placing a huge new burden on many companies, given the progress already made.\u201d<\/p>\n<p>Morningstar submitted comments to the SEC, saying it believes that corporate reporting and disclosure will continue to be incomplete and inconsistent until there is a regulatory requirement to enhance Environmental, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> and Governance (ESG) disclosures. <\/p>\n<p>The letters and other public discourse has revealed a move toward convergence between the existing independent standards bodies and local country and regional regulators. Many of the public letters emphasized the need for clearer tracking, not a disparate system.<\/p>\n<p>The Group of Seven (G-7) wealthiest countries just wrapped a meeting that called for moves to force banks and companies to disclose to investors their exposure to climate-related risks.<\/p>\n<p>Here\u2019s a sampling of input from companies, trade groups and lawmakers to the SEC.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>The <strong>Business Roundtable<\/strong> includes chief executives from more than 200 companies responsible for more than 15 million employees and more than $7.5 trillion in combined annual revenues. Its current leadership is headed by Walmart Inc.<br \/>\n        WMT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207374728\/composite\" class=\"negative\">-0.40%<\/bg-quote><br \/>\n       CEO Doug McMillon. Late last year, the Business Roundtable came out in support of carbon pricing and other measures in an increasingly climate-friendly stance that surprised some observers. But it also stressed its preference for a regulation-lite approach to keep U.S. firms competitive.<\/p>\n<p>In its SEC letter, the group said it wants a transition period as companies report for the first time and wants companies to report on climate change independent of their regular earnings and other reporting requirements. It wants tailored disclosure rules depending on company size and a \u201cliability safe harbor\u201d for newly mandated metrics and for forward-looking information. <\/p>\n<p>The <strong>Chamber of Commerce<\/strong> told the SEC that ESG disclosures shouldn\u2019t go beyond what average investors deem important.<\/p>\n<p>\u201cWe look forward to continuing to be a constructive partner as the process continues,\u201d Evan Williams, director of the U.S. Chamber\u2019s Center for Capital Markets Competitiveness, said in a statement.<\/p>\n<p><strong>Uber Technologies Inc.<\/strong><br \/>\n        UBER,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211348248\/composite\" class=\"negative\">-2.90%<\/bg-quote><br \/>\n       was one of the first companies to submit a comment letter to the SEC. It is urging the agency to create a comparable reporting system by incorporating disclosure and accounting standards from two nonprofit organizations\u2014the Task Force on Climate-Related Financial Disclosures, which was created by the Financial Stability Board, and the Sustainability Accounting Standards Board.<\/p>\n<p>Walmart\u00a0also uses\u00a0the reporting systems from SASB and TCFD and the World Economic Forum has pushed for both.<\/p>\n<p>A <strong>group of large <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> companies<\/strong>, including Google parent Alphabet Inc.<br \/>\n        GOOGL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202490156\/composite\" class=\"negative\">-0.84%<\/bg-quote><span>,<\/span><br \/>\n       Amazon.com Inc.<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"negative\">-0.02%<\/bg-quote><span>,<\/span><br \/>\n       Facebook Inc.<br \/>\n        FB,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205064656\/composite\" class=\"negative\">-0.01%<\/bg-quote><br \/>\n       and Salesforce.com Inc.<br \/>\n        CRM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200515854\/composite\" class=\"negative\">-1.49%<\/bg-quote><span>,<\/span><br \/>\n       said they support consistent and regular reporting on climate-related issues, according to their group letter.<\/p>\n<p>\u201cWe believe that climate disclosures are critical to ensure that companies follow through on stated climate commitments and to track collective progress towards addressing global warming and building a prosperous, resilient zero-carbon economy,\u201d the companies told the SEC.<\/p>\n<p>The companies are in favor of a principles-based framework, include relevant greenhouse-gas emissions data, use existing climate reporting frameworks and standards and require climate reporting to be separate from other filings submitted to the SEC \u2014 due to the reliance on estimates and assumptions in climate reporting, they say \u2014 as well as to give companies enough time to gather and confirm information from third-party providers.<\/p>\n<p>Autodesk Inc.<br \/>\n        ADSK,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209828392\/composite\" class=\"negative\">-1.34%<\/bg-quote><span>,<\/span><br \/>\n       eBay Inc.<br \/>\n        EBAY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204653455\/composite\" class=\"positive\">+0.11%<\/bg-quote><br \/>\n       and Intel Corp.<br \/>\n        INTC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203649727\/composite\" class=\"negative\">-0.34%<\/bg-quote><br \/>\n       were also among the group that signed on.<\/p>\n<p>The <strong>American Petroleum Institute<\/strong>, which represents oil and gas companies, emphasized its recently announced\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/u7061146.ct.sendgrid.net\/ls\/click?upn=4tNED-2FM8iDZJQyQ53jATUXTOXSTeH2t6WcdBhOwYhIpVVS7-2FtEtxrxJJcq61KiYs2cG8_fXk2dV4dl5Ex-2FCOxr-2BD2q7hqr1IskDgzBEWu1icxpO2Ma2C9uwXZXse2zYjYMCFJfzQq9ckVTqL-2BbFTtFn2EuKzd58mLKoowlQ8FoqUO0Ct9XS8IZ61k-2B5NAE-2Fh5A9xKvo-2Bor6y5XcbVkFSLPM2M9DPg9dWCe9Qh4Z-2FGeM2Td-2FPzmLSnQc9v2OuSugH1YY23Ynd8HalXy0T3eR-2BmTOIUNLZQ9-2BzT6WK-2FNBXJH011kExMiS1JC4nk0M22PnhWLJFoI9jHvo-2FvlIAGsebJrm7HMkd99RmWj7NErtBJL04Ps1VlCTQ2tsp0xF3sRQdvvRMmrAYINhq3lAgTpC0ukN3WgCEpzqnh3hY73TZ5erqmnFs-3D\" class=\"icon none\">Climate Action Framework<\/a>.\u00a0API\u00a0and its members are currently developing \u201ca concise and uniform template of core GHG indicators to enhance consistency and comparability in reporting across the industry,\u201d it told the SEC. More information on this new reporting template will be released this summer.<\/p>\n<p>API\u00a0Senior Vice President of Policy, Economics and Regulatory Affairs Frank Macchiarola\u00a0stressed to the SEC that requiring one-size-fits-all metrics for issuers regardless of sector may not be appropriate due to inherent differences among the sectors. <\/p>\n<p>The <strong>Bank Policy Institute<\/strong>, which represents large U.S.-based banks, argued in its comment letter that the SEC should avoid over-prescriptive disclosure standards for banks compared to public companies. The lobbying group also said the regulator should consider separating climate disclosures from securities filings.<\/p>\n<p><strong>BlackRock Inc.<\/strong><br \/>\n        BLK,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207946232\/composite\" class=\"positive\">+0.48%<\/bg-quote><span>,<\/span><br \/>\n       the world\u2019s largest asset manager with some $7 trillion under its watch, wrote to the SEC that \u201cbecause more comparable and consistent climate-related disclosures are in issuers\u2019 as well as investors\u2019 interests, BlackRock supports the SEC mandating climate-related disclosures.\u201d<\/p>\n<p><strong>Rep. Sean Casten<\/strong>, Democrat of Illinois, who is pushing legislation much aligned with current SEC climate-change pursuits, said a level playing field via disclosures will \u201c\u2026<strong> <\/strong>empower investors to make smarter decisions, reduce the risk of environmental and financial catastrophes, and harness the power of free markets to ease the transition from fossil fuels to cleaner, cheaper energy sources.\u201d<\/p>\n<p><strong>Sen. Elizabeth Warren<\/strong>, Democrat of Massachusetts, said companies have been let off the hook. \u201cIt is time to fight back against giant corporations that want to pollute our environment and ask taxpayers to clean up the mess. That is why we are pushing to give investors and the American public more power to hold corporations accountable for their role in the climate crisis,\u201d she said.<\/p>\n<p><strong>U.S. Senate Banking Committee Ranking Member Pat Toomey<\/strong> of Pennsylvania, and all Republican members of the committee, urged the SEC to reject any proposal to implement new global warming disclosures.<\/p>\n<p>\u201cWe do not believe that any further securities regulations to specifically address global warming are necessary or appropriate, and will only serve to further discourage firms from becoming publicly traded, thus denying significant investment opportunities to retail investors,\u201d they wrote. <\/p>\n<p>They also told the SEC they believed activists and not necessarily shareholders would leverage the regulations to advance policy.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Rachel Koning Beals\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Rachel_Koning_Beals\"><\/span>Rachel Koning Beals<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-74AC-DCBA34D6E4C1%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# CEOs want SEC climate reporting separate from earnings but concede new rules are likely &#8221; Republican lawmakers tell Gensler to leave climate change to legislation, not regulation CEOs at the powerful Business Roundtable, investor groups and mostly Democratic lawmakers told the Securities and Exchange Commission they\u2019d support mandatory rules forcing publicly traded companies disclose&#8230;<\/p>\n","protected":false},"author":1,"featured_media":275736,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-275735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/275735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=275735"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/275735\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/275736"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=275735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=275735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=275735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}