G7 & SEC: Mandatory Climate Risk Disclosure Needed Now
Originally published on NRDC Expert Blog.
By Sarah Dougherty, Tom Zimpleman, & Gabriel Daly
G7 leaders met in the UK last week, and climate was high on the agenda, as it must be. One of the areas of agreement among the leaders of the world’s largest economies might seem new but has been in the works for years: mandatory climate disclosures from companies.
The US has broad disclosure laws, which allow the Securities and Exchange Commission (SEC), as a regulator of stock exchanges and stock sales, to require companies to provide the public with information that can help us make decisions, like about a company’s finances, operations, how it compensates executives, and how it is run. Climate change is an issue on which the SEC needs to require more disclosure — and the Chair of the SEC has indicated he and the Commission intend to require companies to disclose how climate change affects the risks and opportunities they face. The SEC is expected to issue a rule later this year. We think it is about time: NRDC has been pushing for more disclosure on environmental issues since 1971. And, it matters to investors with a recent CFA Institute survey finding 40 percent of investment professionals already incorporating climate risk to inform their investment decisions.
As part of our advocacy for mandatory climate disclosure, NRDC submitted comments to the SEC’s recent request for information. Only mandatory disclosures will allow the SEC to meet its mandate: “to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.” If investors do not know the climate risks — and opportunities — that the companies they are invested in may face, it’s hard to see how investors can be protected and markets can function efficiently.
As we explained in our comments, new rules need to require each company to disclose:
- the full scope of its greenhouse gas (GHG) emissions. This includes GHG emissions from assets that it owns, like factories, buildings, or transportation fleets; GHG emissions from the power is uses to run its factories and buildings; and GHG emissions from using the products it makes (in the case of manufacturers) or the investments it makes (in the case of banks or investment companies).
- the company’s projections about how realistic climate change scenarios will affect the company. Climate change is likely to result in more widespread flooding, wildfires, and more powerful hurricanes. Those events can damage property, disrupt supply chains, and hurt employees. But climate change may also lead to a shift to more sustainable products, alternative energy sources, and new business opportunities. Investors need to know how companies are planning for these possibilities.
- how the company’s operations affect communities vulnerable to climate change.
These disclosures would give investors information that’s useful for their decisions, allowing investors to identify companies (and industries) taking the risks of climate change seriously and planning accordingly. Investors would be better able to allocate capital efficiently to companies that are responsibly planning for the physical risks climate change is already creating — like wildfires and sea-level rise — as well as the transitions risks — changes in policy, consumer preferences, prices, and the like — that our collective response to climate change is likely to impose. And as we know, the costs of climate change will be — and are already — borne disproportionately by low-income communities and communities of color. Disclosures could provide information and insights into how different stakeholders may be impacted by climate change, including vulnerable communities. Additionally, shifting financial incentives away from climate-harming investments is one step towards alleviating those burdens on vulnerable communities.
A voluntary system, which has been in effect for about 15 years, was a good start. But voluntary disclosure has not generated important information nor made it easy to compare between companies. Requiring that companies disclose the risks their businesses face from, and contribute to, climate change will produce information comparable across companies and industries, allowing investors and the public to make better-informed decisions.
In their communique summarizing the G7 meeting, the G7 leaders highlighted their agreement on the importance of climate disclosures:
“We emphasise the need to green the global financial system so that financial decisions take climate considerations into account. We support moving towards mandatory climate-related financial disclosures that provide consistent and decision-useful information for market participants and that are based on the Task Force on Climate-related Financial Disclosures (TCFD) framework, in line with domestic regulatory frameworks.”
Ensuring that investors know the climate risks of the companies they own or may consider purchasing is an obvious first step to greening the global financial system. We are glad the G7 leaders agree and are working to make it happen in the world’s largest economies.
Polaris Ranger EV supports security operations at G7 Summit: “The G7 Summit was the largest operation in Devon and Cornwall Police history, with a total of 6,500 officers and staff on duty from all over the UK. We worked extremely hard to minimise the impact on the community around Cornwall, and as part of those efforts, we enlisted a fleet of electric Polaris Ranger vehicles to patrol and monitor the beaches and other hard to reach areas. Being completely electric off-road vehicles, they were the perfect choice for use on sand and provided our officers with the ideal solution for maintaining security without noise, pollution or disruption to the local community.” Image courtesy of Polaris.
On today’s exciting episode of Quick Charge, we explore the Tesla Q4 earnings call’s high-level weirdness, including the impact Bitcoin had on the bottom line, what it means for stock prices, and whether or not you’ll die without Tesla’s solar roof.
You’ll also hear Jo ask, “What even is a P/E Ratio, and why does it matter?” before asking if we’ll all be killed without a solar roof, and learning about what happens when our phones run out of power. All this and more – enjoy!
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![Here's our best look at the Kia EV4 so far, including the interior [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/01/Kia-EV4-inside-spotted.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Kia confirmed it will launch the EV4 this year as it fills out “a full lineup of popular EVs.” According to Kia, the EV4 is “an entirely new type of EV sedan with a distinct style and sports car-like proportions. However, it’s expected to be much cheaper than your average sports car. With its official debut around the corner, we are getting a closer look at what we can expect from the Kia EV4, including the inside. Check it out below.
The EV4 was revealed as a concept in October 2023 alongside the EV3 and EV5 as part of Kia’s new mass-market electric vehicle lineup.
After launching the EV3 in Korea, it’s now arriving in Europe and other overseas markets. The EV5 was initially launched in China, but Kia will bring the lower-priced electric SUV to Europe, Korea, Australia, and other regions in 2025.
Kia announced earlier this week that “the sedan-type electric vehicle EV4 will be launched sequentially around the world” after reporting Q4 and full-year 2024 earnings.
The EV4 will join the EV3, EV5, EV6, and EV9 to complete Kia’s “EVs for all,” with prices ranging from around $30,000 to upwards of $80,000. At the time, Kia said it plans to “significantly” and “rapidly” expand its electric car lineup, and it’s already making good on its promise.
Check out the Kia EV4, inside and out
Although we’ve already seen it a few times in public, including in the US late last year, a new video from HealerTV gives us a better idea of what to expect from the Kia EV4, including its interior.
One of the first things you will notice is the unique exterior profile. It appears to maintain much of the concept’s design with bold character lines and a streamlined silhouette.
Although not shown, the EV4 will feature Kia’s new ccNC (connected car Navigation Cockpit) infotainment system with dual 12.3″ driver display and infotainment screens.
The video shows what appears to be a spacious interior despite its expected smaller size. You can see how a car seat fits in the back seat with plenty of space.
Although prices and other specs will be revealed closer to launch, the EV4 is expected to start at around $30,000 to $40,000, depending on the market. Like the EV3, it’s also based on Hyundai’s E-GMP platform, which should deliver around 375 miles (WLTP) range, if not more, with the larger 81.4 kWh battery.
A hatchback EV4 model was also spotted out in public last year. The variant will likely be aimed at the European market.
Would you buy Kia’s electric sedan for around $35,000? Let us know in the comments below.
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Not-for-profit power cooperative Great River Energy, which serves 1.7 million people across Minnesota and Wisconsin, has partnered with Prisma Photonics to roll out real-time monitoring technology across 90 miles of transmission lines in northern Minnesota. Prisma Photonics will provide its PrismaPower system to track threats like wildfires, ice, wind, and physical damage to the Minnesota grid.
The multi-year project will install PrismaCircuit and PrismaClimate across five key transmission lines connected to four substations using existing fiber optic lines. The goal is to strengthen the grid ahead of Minnesota’s next winter season. These lines, spread across central and northern Minnesota, will now be under constant surveillance without the need for traditional sensors.
“We’re leveraging innovative new technologies that maximize our existing infrastructure investments,” said Priti Patel, vice president and chief transmission officer at Great River Energy. “This solution allows us to utilize our current fiber optic network in a new way to increase resilience in areas of northern and central Minnesota.”
Instead of installing physical sensors on power lines, Prisma Photonics’ technology taps into fiber optic cables already in place, transforming them into an advanced sensing system. Here’s how the company’s works:
Prisma Photonics Fiber Sensing works by connecting an optical interrogator unit into a standard single-mode optical fiber. It is one fiber, part of a cable laid alongside the monitored asset, probably for communications purposes. The Interrogator transmits optical pulses that propagate down the fiber. A minute fraction of the light is reflected from each point along the fiber. The Interrogator measures the reflected light to determine the strain, temperature, pressure, and other quantities over hundreds of kilometers of fiber with sub-meter resolution. The fiber is turned into a continuous acoustic sensor – as if there were tens of thousands of microphones spanning hundreds of kilometers.
Prisma Photonics says this means faster deployment, no service interruptions, and no need for specialized crews in all weather conditions.
Dr. Eran Inbar, CEO of Prisma Photonics, said, “Our partnership with Great River Energy demonstrates how utilities can extract additional value from their existing infrastructure to enhance grid resilience while avoiding traditional sensor-based solutions’ complexity and maintenance requirements.”
Read more: Minnesota’s largest coal plant goes solar: Sherco Solar comes online
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
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