Ceres welcomes today’s announcement from tech giant and Ceres Company Network member Apple that it supports regulatory action by the U.S. Securities and Exchange Commission to mandate climate change disclosure rules.Â
“Today’s bold announcement from Apple affirms that there is support from companies to mandate the disclosure of comprehensive, decision-useful climate-related information that financial markets, investors and stakeholders need,” said Mindy Lubber, CEO and President of Ceres, which has long called for mandatory corporate disclosure of climate risks. “In becoming the first major U.S. publicly traded company to come out in favor of the SEC issuing mandatory climate disclosure rules, Apple is demonstrating their commitment to transparency and support for necessary regulatory change.”
“If we are truly going to tackle the climate crisis, we need clear information on the risks investors and companies face. Climate risk is a material systemic financial risk and disclosure is essential to managing that risk and making good decisions. It is simply impossible to manage climate risks without first measuring and disclosing them,” Lubber added. “Today’s announcement is consistent with Apple CEO Tim Cook’s continued business leadership on addressing the impacts of the climate crisis on our economy and the future of our society and planet. We encourage other companies to take this bold step and call on the SEC to issue mandatory rules so we can drive large scale corporate action on climate disclosure and finally bring more clarity and transparency to bear in the market and in decision-making.”
For more than a decade, Ceres has advocated for the SEC to mandate the disclosure of climate risks. In 2010, the SEC issued voluntary guidance in response to a petition filed by Ceres Investor Network members. In 2020, the Ceres Accelerator for Sustainable Capital Markets released Addressing Climate Change as a Systemic Risk: A Call to Action for U.S. Financial Regulators, outlining the systemic risks of climate change and calling on the SEC to mandate climate risk disclosure, among some 50 other regulatory action steps. Investors with more than $1 trillion in assets under management endorsed the report, and sent letters to the heads of various financial regulatory agencies -- urging them to take up its recommendations.
Just last week, the Ceres Accelerator issued a follow up report, Turning Up the Heat: The need for urgent action by U.S. financial regulators in addressing climate risk, highlighting that while there has been progress from the U.S. regulatory community, much remains to be done to address the systematic nature of the climate crisis. Comprehensive, consistent corporate climate disclosures would position regulators and markets to make informed decisions for a net-zero future.
Apple has been a member of the Ceres Company Network since 2015.
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.