SEC Set to Weigh Climate-Change Disclosure Proposal This Month

The U.S. Securities and Exchange Commission is set to release this month its highly-anticipated plan aimed at pressing companies to do more to tackle climate change.

The rule would mark one of the most concrete step yet by one of President Joe Biden’s financial regulators to address the effects of a warming planet, a key focus for the White House. The proposal is expected to require companies to disclose more about the risks posed to their operations by rising temperatures, and it could force firms to reveal details such as the amount of energy they buy.

The SEC didn’t provide details of the plan when announcing on Thursday that it’d consider the proposal on March 21. Democrats at the watchdog and on Capitol Hill have been wrangling for months behind-the-scenes over how to craft the regulations, which are almost certain to face legal challenges from business lobbyists.

Read More: SEC Bogs Down on Climate Rule, Handing White House Fresh Setback

The SEC’s plans have also gained increased attention from activists in recent months after another centerpiece of Biden’s climate agenda -- some $550 billion in tax credits and spending for clean energy -- collapsed last year in the Senate. Pressure on the issue has also ratcheted up in Congress after Senator Elizabeth Warren last month demanded that the SEC speed up its work on the rules.

A final rule is still likely months away. After the SEC proposes the plan, the commission must seek public comment before holding another vote.

--With assistance from Robert Schmidt.

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Ben Bain in Washington at bbain2@bloomberg.net

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Ben Bain at bbain2@bloomberg.net

Elizabeth Dexheimer

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