Sustainable investing advocates are worried the SEC will mask investment risks, particularly those tied to climate change, as the agency eyes cutting back corporate disclosures on business threats.
Paul Atkins, the Securities and Exchange Commission chairman, said last week that the agency is considering curtailing what companies say about hazards to their businesses. Overly lengthy risk reporting hinders the ability of investors to decipher significant dangers, the Republican said.
Atkins didn’t detail how the SEC would improve the disclosures. But he’s criticized the agency’s 2024 climate disclosure rules and other environmental, social, and governance reporting requirements. The SEC’s now-paused environmental ...