In response to the Securities and Exchange Commission (SEC) adopted rule on climate-related financial risk disclosures for U.S. publicly listed companies, Sharmeen Contractor, Oxfam America’s Market Systems and Investors Lead, said:
“The adoption of a final rule is a welcome first step, but Oxfam believes that more should be done by the agency to represent a high standard in climate-related financial disclosures. We understand that the SEC faces increasing political pressure, but passing anything short of a robust rule will only codify the patchwork of disclosures we already see. A strong rule would ideally provide much-needed transparency for investors to understand how companies are prepared to effectively manage the risks of climate change impacts and the transition to a green economy — including with sector-specific disclosures for high-risk industries like oil and gas.
“Current voluntary disclosures fail to address gaps and inconsistencies in reporting and often can mislead investors and the public. Oxfam’s most recent assessment of some of the largest agribusiness companies globally highlighted discrepancies in companies emissions disclosures in major food commodity supply chains. More than 97% of investors supported a strong climate related financial disclosure rule, including mandating Scope 3 emissions disclosures.
“Without robust disclosure requirements and checks by independent groups on all direct and indirect emissions, it will be challenging to compare companies within and across sectors and reduce the risk of greenwashing. Oxfam looks forward to working with the SEC and investors to develop a more robust version of a rule, one that can represent a strong standard which other countries can emulate.”
/ENDS
Notes to Editors:
-Oxfam America's comment on the 2022 proposed rule on climate-related financial disclosures can be found here: https://www.sec.gov/comments/s7-10-22/s71022-20133143-303346.pdf.
-The leading voluntary disclosure standard setter for climate-related financial disclosures, the International Sustainability Standards Board (ISSB), to whom Oxfam provided a comment, confirmed the disclosure of Scope 3 emissions as a part of its standard.
-Oxfam and others have supported sector-specific climate-related financial disclosures in the oil and gas sector in particular, as outlined in the 2023 Publish Your Plans report, in order to arm investors with the information needed to assess risks in the context of the energy transition. There is broad consensus around medium-term oil and gas demand reduction and price declines that will profoundly impact the valuation of oil and gas projects and the companies operating them, and investors lack sufficient information to assess the management of these transition risks.