April 25, 2022
How can the Commission best regulate, monitor, review, and guide climate change disclosures in order to provide more consistent, comparable, and reliable information for investors while also providing greater clarity to registrants as to what is expected of them?
I think that the information that is collected by the commission should be easily available to the public. As a consumer, I consider where I spend my money to be like voting for what I believe in. Therefore, I do not want to be supporting businesses that are not aligned with a sustainable agenda.
I propose that the information be formatted in a way that is easy for citizens who do not have a background in business or environmental sciences to understand. This could be done using infographics and definitions of specific terms.
What information related to climate risks can be quantified and measured?
Some of the information I would like to know as a consumer is annual water usage, electricity usage, and annual solid waste. And of course, annual greenhouse gas emissions. I also believe consumers would benefit from knowing what efforts businesses are making to counteract their environmental impact. While I was working for a program that awarded green businesses, we used these as factors for eligibility. A business was considered for the award if they reduced their use of natural resources, or spent a certain percentage of their income on means that would reduce their usage.
How should any such industry-focused standards be developed and implemented?
I believe that it is the right of the consumer to be informed on the climate impact of businesses. Currently, businesses in the United States are responsible for an astronomical percentage of greenhouse emissions. Investors recognize that future businesses have to become more sustainable in order to be profitable. Part of the reason behind this is because the customer is drawn to sustainable companies. However, many companies can claim to be green in some areas while hiding their environmental impact in other areas. The benefit of this policy will be standardized reporting by all businesses. This information can also help the consumer make a more informed decision while shopping.
If the Commission were to endorse or incorporate a global standard, what are the advantages and disadvantages of having mandatory compliance?
Mandatory compliance would help improve the effectiveness of the rule. I believe that the next step for these sanctions is to include a tax on corporations who are excessively releasing greenhouse gases.
Corporations that are releasing high levels of these gases need to pay higher taxes because the government will eventually have to spend more money to alleviate the impact of climate change on its citizens (due to extreme weather, rising sea levels, droughts, etc). It is of the utmost importance that these sanctions be serious enough to encourage companies to make drastic efforts to decrease their environmental impact.