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The SEC s Time To Act - Center for American Progress

The SEC’s Time To Act A New Strategy for Advancing U.S. Corporate and Financial Sector Climate Disclosures February 19, 2021, 5:00 am Getty/CQ-Roll Call Inc./Bill Clark A flag flies outside of the U.S. Securities and Exchange Commission building in Washington, D.C., July 2020. Julia Cusick Introduction and summary Climate change poses major risks to U.S. companies, the domestic economy, and the planet. Those risks include the loss of jobs. The 2008 financial crisis resulted in the loss of more than 8 million jobs, 1 and the cumulative job losses from future climate-driven financial impacts could be even larger. 2 With many climate risks such as hurricanes and wildfires already materializing, investors, regulators, and the public need better information to evaluate the risks to companies and the financial system and take appropriate action in response.

With Patchy Guidance, Companies May Have Climate Risk Blind Spots

Dust storms are a hazard of climate change, yet leading financial disclosure initiatives fail to include this and other hazards in their physical climate risk assessment guidance. Photo by amazingsdj/Pixabay The record-breaking wildfires and hurricanes of 2020 may not stand out as the worst catastrophes in a year defined by compounding crises. But these natural disasters are among the long list of physical climate hazards becoming more frequent and intense. Globally, natural disasters caused $210 billion in damages in 2020, $95 billion in the United States alone. Scientific evidence tells us these trends will only worsen as global temperatures rise, taking a toll on human life, infrastructure, economic activity and financial stability especially if risks continue to go underpriced. By 2100, climate change could cost the global economy hundreds of trillions of dollars.

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