{"id":13877,"date":"2022-03-22T12:53:59","date_gmt":"2022-03-22T12:53:59","guid":{"rendered":"https:\/\/tahrir2day.com\/news\/2022\/03\/22\/the-new-sec-climate-rules-and-company-releases-on-climate-risk-quartz\/"},"modified":"2022-03-22T12:53:59","modified_gmt":"2022-03-22T12:53:59","slug":"the-new-sec-climate-rules-and-company-releases-on-climate-risk-quartz","status":"publish","type":"post","link":"https:\/\/tahrir2day.com\/news\/2022\/03\/22\/the-new-sec-climate-rules-and-company-releases-on-climate-risk-quartz\/","title":{"rendered":"The new SEC climate rules and company releases on climate risk – quartz"},"content":{"rendered":"
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The US Security and Exchange Commission (SEC) announced yesterday (March 21) that it requires companies to publicly disclose their greenhouse gas emissions and other climatic financial information..<\/strong><\/p>\n

SEC regulations already require public companies to disclose their financial situation, as well as the potential threats to their business. With the new information, investors will also be better able to understand the specific risks that climate change poses to these companies.<\/p>\n

“Our entire economic system is at risk, it’s not just individual business,” said Simon Fischweicher, head of firms and supply chains for the CDP climate revelation platform. “Climate change poses risk on a planetary scale, which is why you see the entire financial sector talking about the importance of climate change.”<\/p>\n

Companies have both physical and transitional climate risks<\/h2>\n

There are two main categories of climate change risk that companies may face: physical and transition.<\/p>\n

Physical risks <\/strong>are those related to the physical impact of climate change, including:<\/p>\n

\ud83c\udf2a Increased number and severity of extreme weather events<\/p>\n

\ud83c\udf27 Changes in precipitation patterns and weather patterns<\/p>\n

\ud83c\udf0a Going up ant mirror<\/p>\n

. Rising average temperatures<\/p>\n

Transition risks <\/strong>have fallen through the transition to a carbon economy, including:<\/p>\n

\ud83c\udfed Increase price of greenhouse gases<\/p>\n

\ud83d\udc69\u200d\u2696\ufe0f Mandates on and regulation of existing products and services<\/p>\n

\u00c4nneren Change consumption behavior<\/p>\n

\ud83d\udeab Stigmatization of the sector<\/p>\n

Climate risk releases by Unilever, Shell, and Stanley Black & Decker before SEC climate rule<\/h2>\n

While the SEC now requires U.S.-based companies to make climate risk publications, some organizations already do so through frameworks such as CDP and the Task Force on Climate-Related Financial Disclosures.<\/p>\n

Companies that already share their risks often use case studies and scenarios to explain the impact on the business itself. Unilever (pdf), for example, provides a case study for how an extreme weather event can affect palm oil production. The company is one of the largest buyers of palm oil in the world.<\/p>\n