SEC Chair warns lack of climate rule exposes U.S. companies to EU reporting

Here’s a note from “ESG Today”:

The successful establishment of climate reporting rules in the U.S. could potentially help companies facing more onerous climate-related disclosure requirements in other jurisdictions, according to comments by Securities and Exchange Commission (SEC) Chair Gary Gensler at a Council on Foreign Relations event.

Alternatively, the lack of a U.S. rule would be more likely to result in many companies forced to comply with foreign reporting rules such as those in the EU’s Corporate Sustainable Reporting Directive (CSRD), Gensler warned, with the SEC unable to discuss substituted compliance – a system under which companies are seen as satisfying some requirements under one jurisdiction’s rules by complying with comparable rules elsewhere – with its EU counterparts.