Sep. 16, 2022
Dear Chair Gensler, I am writing to thank you for taking steps to make it easier for investors like me to understand climate risk. As an investor looking to maximize my returns, I need to know whether or not a company is preparing to be successful in a low-carbon world. More and more economies are adopting policies and taking steps to align with the goals of the Paris Agreement. Companies not working to reduce their Scope 1, 2 and 3 greenhouse emissions may not be prepared for that future. Without this information, I won't be able to tell what companies are likely to continue to be profitable as the economy transitions to clean energy and which companies could put my savings at risk. Earlier this summer you proposed a rule to require publicly traded companies to disclose "material" Scope 3 emissions. Many investors - both asset managers and individual investors like me - asked you to make this a requirement for all large public companies, and I am hopeful that you will listen to the voices of regular people like me, not just big corporations looking to hide their risks. As you look to finalize these rules, I wanted to thank you for doing everything in your power to ensure that investors like me have the information we need to be able to make smart investing decisions for a low-carbon future. I am looking forward to seeing strong greenhouse gas disclosures, inclusive of Scope 3 emissions, in your final ruling later this year. I have considerable retirement investments that I seek to align with my personal values. I believe climate change is an existential threat that business and finance cannot ignore. I will use information on green house emissions to direct my investments to climate friendly businesses. I believe that finance, like democracy, benefits from transparency. A harsh light is sometimes painful but the eyes adjust. So will businesses and we will all be better off with clearer vision. Sincerely, Stephen Bachhuber