Retail investors broadly like the idea of the SEC requiring public companies to disclose their climate risk data, according to the results of a recent survey.
Seventy percent of more than 2,500 current investors surveyed in March said they either somewhat or strongly supported the requirement, according to a survey published April 28 by Public Citizen and the Americans for Financial Reform Education Fund. Those groups commissioned the survey, which was conducted by Embold Research.
While 36% of people said they would trust the climate risk data in disclosures made voluntarily by companies — which is the current standard — 58% said they would trust that information if companies were mandated to report, the survey found. Further, 71% indicated they would trust the data if companies made disclosures to the SEC and the information was audited by a third party.
In March, the SEC unveiled a proposed rule that would require most public companies to report emissions data, including Scope 3, with third-party verification eventually being required for Scope 1 and 2 emissions. The agency is currently reviewing public comments and preparing a final version of the rule.
The recent survey data echo the results of a December poll commissioned by Just Capital, Ceres, Public Citizen and SSRS. That report found that 87% of 1,100 Americans surveyed said they think the government should require large companies to disclose their climate risks, with 97% of Democrats and 74% of Republicans agreeing.
