Thread by @GaryGensler

Let's talk about something a lot of us watched during the last 2 weeks: the Olympics.

In the Olympics, there are rules by which we measure an athlete’s performance. Athletes are evaluated based on numeric difficulty of skills & a judge’s qualitative impression of performance.

The sports also change over time. Occasionally fans will say, “I want something different.”

I think that’s a good analogy for public company disclosure.

➡️ With climate risk disclosures, investors are asking regulators for more. ⬅️

I've asked @SECGov staff to develop a mandatory climate risk disclosure rule proposal for the Commission’s consideration by the end of the year.

Some of my thoughts on what such disclosures might look like ⬇️

1⃣ I believe these climate disclosures should be consistent & comparable.

2⃣ I’ve asked staff to make recs about how companies might disclose Scope 1 & Scope 2 greenhouse gas emissions, along with whether to disclose Scope 3 emissions — & if so, how & under what circumstances.

3⃣ I’ve also asked staff to consider whether there should be certain metrics for specific industries, such as banking, insurance, or transportation.

When it comes to disclosure, investors have told us what they want.

It’s now time for the Commission to take the baton.

Read my full remarks at @PRI_News where I outline details of what climate risk disclosures might look like: sec.gov/news/speech/ge…