SEC Climate Plan Leaves Open Path to Use Global Green Standards
“While other frameworks may provide useful information, standardizing reporting for greenhouse gas emissions marks a significant improvement for investors, said Jasmin Sethi, associate director of policy research at Morningstar Inc.
For disclosures to be useful for investors, the information has to be based on the same standard to provide comparable data to analyze. And investors want to compare those disclosure not just across U.S. listed companies, but globally.
The SEC seems to be moving in the same direction as Canada and Europe, which have both proposed climate reporting requirements, Sethi said.
“We definitely support having global consistency,” she said. “We’re dealing with global companies. Investors are looking at things from a global perspective.”
Amanda Iacone