Feb. 23, 2023
February 23, 2023 Chairman Gensler, I am writing to express my support for this rule. In a world of quickly evolving environmental regulations, it is essential that investors have as much information regarding an organizations operations as possible, mainly when it involves heavily regulated emission outputs. As the push for companies to become low-carbon and/or carbon-neutral persists, it becomes increasingly important for investors to be aware of what risks their investments are subject to in the short, mid, and long-term. While many companies have already adopted these regulations internally, this rule will provide continuity across all organizations and sectors, giving investors peace of mind and promoting economic success. Some of the specific advantages of the rule include: 1. Increased transparency - The rule provides improved transparency to investors about how an organization is managing climate-related impacts and risks, allowing investors to informed decisions about where to allocate their resources. 2. Better risk management - By requiring organizations to disclose their environmental impacts and climate-related risks, greater efforts to help mitigate this risk and minimize emissions will help both the environment and the long-term financial performance of the organization. 3. Improved accuracy in valuation - The more information given about a companys operations, the more accurately an investor can value the companys stock. 4. Better market efficiency - requiring the same information to be disclosed from all companies will reduce information imbalance and allow for a more efficient allocation of capital. While the rule appears to be effective, some potential improvements may be expanding the scope of the rule, clarifying reporting documents, synchronizing with other reporting frameworks, and expanding the scope of the rule. Overall the rule provides investors with a greater understanding of the risks, impacts, and opportunities for potential investments and can assist with making more informed decisions to better manage portfolios.