Investors and the public soon will have a clear window into how climate-juiced disasters are affecting every public company across the United States.
That’s thanks to a wonky requirement tucked inside an exhaustive climate rule finalized earlier this month by the Securities and Exchange Commission.
The provision, which targets companies’ exposure to disasters including hurricanes, wildfires, drought and extreme heat, has received less attention than other parts of the controversial rule. But analysts say it’s among the regulation’s most significant measures because it will generate detailed, audited information about how global warming is eating into companies’ bottom lines.
“The fact that it’s included in this rule is essential,” said Julie Gorte, senior vice president for sustainable investing at Impax Asset Management.
