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Velazquez Introduces Bill to Promote Corporate Disclosures Related to the Paris Climate Agreement and Investments in Clean Energy

Velázquez Introduces Bill to Promote Corporate Disclosures Related to the Paris Climate Agreement and Investments in Clean Energy
March 10, 2021
Press Release

Washington, DC—Congresswoman Nydia M. Velázquez (D-N.Y.) has introduced the Paris Climate Agreement Disclosures Act, a bill that would require the U.S. Securities and Exchange Commission (SEC) to promulgate a rule that would compel public companies to make part of their annual shareholder report the steps they are taking to meet the greenhouse gas emissions targets and temperature goals set forth in the Paris Climate Accord.  Requiring the SEC to enact a rule of this kind will provide a primary and standardized framework for climate-related disclosures that will help encourage investors to consider the climate-related actions of public companies when making investments.
 
“We are already seeing the markets become more and more favorable towards clean energy, but currently, investors do not have all the tools they need to make climate-forward decisions,” said Velázquez. “This bill will require publicly-traded companies to disclose what they are doing or not doing to reduce greenhouse gas emissions so that investors can make better-informed decisions about where to put their money.”
 
Under existing law, public companies must provide an annual shareholder report to the SEC. Under Velázquez’s bill, this report would include the steps these companies are taking to achieve the temperature goals of the Paris Climate Accord.
 
Adopted in 2015, the Paris Climate Accord has spurred nearly $23 trillion in opportunities for climate-smart investments in emerging markets through 2030. Velázquez’s bill would help investors gauge which companies are moving towards a cleaner energy future by requiring the disclosure of climate-related actions.
 
The full text of the bill is available here.
 
The Paris Climate Agreement Disclosures Act has been endorsed by the following organizations: Rockaway Initiative for Sustainability and Equity (RISE); Green America; and the Union of Concerned Scientists.