ARTICLE
26 October 2021

SEC Commissioner Pushes Enhanced Disclosure To Address Climate Risk

CW
Cadwalader, Wickersham & Taft LLP

Contributor

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Ms. Lee also argued for a carbon tax that would incentivize market forces "to shift capital today to get us where we need to be tomorrow."
United States Finance and Banking

On a London Stock Exchange Investor Group webinar, SEC Commissioner Allison Herren Lee highlighted the SEC's role in a "whole-of-government" approach to combating the risks associated with climate change, including enhanced disclosures to inform markets and policymaking.

She emphasized the collaborative nature of developing a climate-related disclosure regime, noting her own request for public comment on environmental, social and governance matters and SEC Chair Gary Gensler's directive to staff to prepare a climate risk disclosure rule proposal.

Ms. Lee also argued for a carbon tax that would incentivize market forces "to shift capital today to get us where we need to be tomorrow." She asserted that markets only operate optimally when so incentivized.

Commentary

A carbon tax, whatever the benefits may be, is within the purview of legislators. Regulatory agencies have more than enough to do just focusing on matters that fall within their jurisdiction.

Primary Sources

  1. SEC Speech, Allison Herren Lee: Remarks at the PRI/LSEG Investor Action on Climate Webinar

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