Letter: New SEC rules are good for the climate

It is good news that the SEC, Securities and Exchange Commission, is proposing new rules that would require public companies to disclose the greenhouse gas emissions they produce and how climate risk affects their business. The SEC is charged with protecting investors, maintaining fair, orderly and efficient markets and facilitating capital formation.

A majority of Americans believe that the climate is changing and that human action is largely responsible. Investors want to know how companies are analyzing and responding to climate risk, what steps they are taking now and what their plans are. Currently when I look at annual reports, there is very little reference to climate risk or climate action. These proposed rules would help remedy this situation.

In the near future, I am hopeful we will have national legislation that puts a rising fee on fossil fuels, using the revenues to protect American households from rising energy costs. Such a fee or tax would work across the economy and would surely impact businesses of all sizes. At this time there is no way for us to know which corporations are planning for their financial futures in the realm of climate costs and climate risk. For me as a small investor, that is unacceptable.

My congressman, Rep. Sean Casten, has introduced legislation similar to the proposed rules, for which I thank him. In the current absence of legislation, this rule change should be welcomed by any investor, including anyone with a pension fund or retirement fund that makes investment decisions on our behalf.

On the SEC website, there are links to easily comment on proposed rule making, including this one, "The Enhancement and Standardization of Climate-Related Disclosures for Investors."

Laura Haule

Warrenville