SEC: Businesses Required to Disclose Climate Change Risks to Bottom Line

Good news for advocates of the triple bottom line; bad news for the business community, or at least the ones assessing risks for their companies. The Securities and Exchange Commission ruled yesterday in favor of requiring companies to "disclose in their public filings the impact of climate change on their businesses--from new regulations or legislation they may face domestically or abroad to potential changes in economic trends or physical risks to a company."

In a highly divided vote (3-2), the Commission stated that since businesses already are required to report anything that could have a significant impact on their bottom line, this should be a natural fit. They did, however, distance themselves from making any blanket statements on global warming or "the topic of climate change," saying the ruling was strictly added guidance to reporting on business risks. Fair enough.