Sep. 15, 2022
Dear Chair Gensler, I join all those writing to thank you for taking steps to make it easier for investors like me to understand climate risk. Of course all investors are looking to maximize returns, so we all 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. However, some companies not working to reduce their Scope 1, 2 and 3 greenhouse emissions; they may not be prepared for that future. Without this information, I can't determine what companies are likely to continue to be profitable as the economy transitions to clean energy-- and which companies could put my investments at risk. The SEC recently 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. I am hopeful you'll listen to the request of regular people like me, as opposed to big corporations looking to hide their risks. As you prepare to finalize these rules, I want to thank you for doing everything in your power to ensure that everyday investors like me have the necessary information to be able to make smart investing decisions for a low-carbon future. I look forward to seeing strong greenhouse gas disclosures, inclusive of Scope 3 emissions, in your final ruling later this year. Thank you! Lisa E. Stone