NEW YORK (Legal Newsline) - New York Attorney General Andrew Cuomo is pleased that companies will have to disclose how climate change laws will affect their business to investors.
The U.S. Securities and Exchange Commission issued the new requirements Wednesday following a 3-2 vote. Cuomo said he filed a petition in 2007 requesting the SEC take such action.
"The SEC's action reinforces our position that carbon-intensive industries have an obligation to inform investors of the material risks that climate change may pose to their companies," Cuomo said.
"I will continue to use my authority to make sure companies that emit large amounts of global warming pollution disclose the full financial risks of doing so -- as such practices benefit both the marketplace and the environment over the long term."
Cuomo reached settlements with three energy firms that required they disclose the financial risks of climate change. Those firms were Xcel Energy, Dynegy and AES Corp.
"We are not opining on whether the world's climate is changing, at what pace it might be changing, or due to what causes. Nothing that the Commission does today should be construed as weighing in on those topics," SEC Chairman Mary Schapiro said.
"Today's guidance will help to ensure that our disclosure rules are consistently applied."
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