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.
Remember Foxconn? It’s been years since we’ve spoken the name, so it was a big surprise that the automotive division of the behemoth electronics manufacturer would be one of the first Chinese (technically Taiwanese) brands to come to the States. A Foxconn executive recently detailed a full offensive of new BEV models in the works, two of which will hit the US market and one as early as late 2025.
We last covered Foxconn in 2023 as the electronics specialist and automotive contract manufacturer was caught in a tiff with its client Lordstown, which inevitably led to the demise of the short-lived electric pickup startup.
As you may recall, Foxconn acquired the Lordstown production facility in Ohio to build vehicles for other OEMs but had a rough go of it. In addition to failed production runs with Lordstown Motors, Foxconn was also tapped for US manufacturing of Fisker’s second BEV model, the PEAR. We know how that saga ended.
Last we heard, Foxconn was assembling all-electric tractors in Ohio for Monarch, but that was over two years ago. With the way this industry moves, two years without any news is enough to get lost in the EV ether. The Foxconn name has reemerged in recent months as the world’s largest electronics manufacturer has been tied to Nissan, Honda, and Mitsubishi (possibly all three) as a potential partner to help build software-defined vehicles (SDVs).
In a recent chat with the media, one of Foxconn’s top executives avoided discussing an alliance with Japanese automakers aside from continued interest in a possible joint venture but did divulge plans for six battery electric vehicles to be built in Taiwan and shipped around the globe, two of which will reach US consumers.
Foxconn plans two BEVs that will eventually be built in US
As reported by Auto News Europe, we learned some interesting plans about Foxconn’s global EV expansion, which includes two models in the US, following an April 9 press conference in which Jun Seki touted the Taiwanese company’s potential as a BEV contract manufacturer.
During the presentation, Seki outlined Foxconn’s plans for six all-electric models and buses, proclaiming that the company has the necessary toolbox to design and assemble a full range of EVs. Per Seki, those models will initially be built in Taiwan and shipped worldwide, but Foxconn has the capacity for localized production in different regions, including the US.
Of those six Foxconn models donning the company’s “Foxtron” badge, two are expected to hit the US: The Model D multi-purpose vehicle (MPV), designed by Pininfarina, and the Foxtron Model C crossover, which has been in production for the Taiwanese market since late 2023 as the Luxgen N7.
Foxconn’s Model C will hit the US first and will be available for customers to test by late 2025, per Seki. The Model D is expected to reach US consumers sometime in 2027. While these models will initially be built overseas and shipped over, Foxconn’s top executive shared both models are expected to eventually be built on US sold, assumedly at the Lordstown facility, although that has not been confirmed.
Foxconn also has plans for several non-US BEVs, including a Model B compact crossover, Model E sedan, Model A compact van, and a Model T large bus, and Model U minibus.
Foxconn’s plans to bring EVs to the US come at an interesting time, considering a growing trade war between the US and China amid rising tariffs from both sides. Those ongoing tensions will undoubtedly play a role in Foxconn’s decision whether or not to try and import the Model C and Model D into the US, or could expedite its eventual plans to build them in North America.
This will undoubtedly be a story to watch as we move deeper into 2025. Perhaps we will see the Model C pop up at US showrooms; perhaps not!
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An oil pumpjack is seen in a field on April 08, 2025 in Nolan, Texas.
Brandon Bell | Getty Images
President Donald Trump’s trade war has thrown the oil market into deep uncertainty, triggering wild swings in crude prices, undermining investor confidence and jeopardizing domestic production.
U.S. crude oil hit a low of $55.12 on Wednesday, down 23% from the closing price on April 2 when Trump announced his sweeping plan to slap tariffs on more than 180 countries. The rapid pullback in prices threatens the president’s “drill, baby, drill” agenda as companies will struggle to boost output at profit.
But West Texas Intermediate staged a comeback after Trump suddenly reversed course Wednesday, announcing a 90-day pause on high tariffs for most trade partners with the exception of China. The U.S. benchmark swung 13% from its session low to close at $62.35 in response.
Trump’s decision to lower tariffs to 10% for most countries gave the market a temporary reprieve from fears of a spiraling trade war. But U.S. oil producers face an environment of “extreme uncertainty” that will make them hesitant about investment decisions, said Jim Burkhard, head of oil market research at S&P Global Commodity Insights.
Weaker confidence
U.S. crude oil fell more than 4% on Thursday to under $60 a barrel as traders focused Trump’s decision to hike tariffs on China to an eye-watering 125%. And it’s unclear how negotiations with the dozens of countries that have gotten a reprieve will pan out.
West Texas Intermediate crude oil prices over the past month
“There’s a pause — the uncertainty has not gone away,” Burkhard said of Trump’s reversal. “Confidence about the future is weaker now than it was a month ago and prices are lower.”
“Can the U.S. negotiate with 70 countries all at once? I don’t think the chaos is over,” he said.
Trump’s on again, off again approach to tariffs is causing real damage, said Susan Bell, senior vice president of commodity markets at Rystad Energy. The safest option in times of uncertainty for asset-based businesses like oil companies is to reduce capital expenditures, Bell said.
“There’s a loss of confidence, not just in investment in the shale industry, but really investment in the United States,” she said.
Oil production threatened
Shale oil companies have driven the rapid growth of the U.S. into the world’s largest crude producer. These companies currently need U.S. crude prices to average at least $65 per barrel to drill new wells at a profit, according to executives at 81 companies surveyed by the Federal Reserve Bank of Dallas.
U.S. crude prices in the low $60s is the zone where companies may start drilling less over the next six months, Burkhard said. Producers will increasingly have to decide either to reduce lucrative returns for shareholders or scale back their activity in the oil patch, he said.
Some 50 rigs could get cut immediately with more potentially on the chopping block if prices remain at these levels, Bell said.
Goldman Sachs has lowered its price forecast for WTI to $58 by December 2025 and $51 by the end of next year. U.S. onshore oil growth would flatline if crude falls to range of $50 to $55 per barrel for a sustained period, said Walt Chancellor, an energy strategist at Macquarie Group.
Shale companies also face the threat of Trump’s steel tariffs potentially increasing the cost of new wells by 10%, Bell said. The companies would need even higher oil prices to drill new wells profitably, she said.
“It adds to costs at the time that their that oil prices are falling — it’s another hit,” Burkhard said of the steel tariffs.
U.S. shale producers were scathing in their criticism of Trump’s tariff policy in anonymous responses to the the Dallas Fed Energy Survey published in March.
One executive said “the administration’s chaos is a disaster for the commodity markets.” Trump’s call to “drill, baby, drill” is a “myth and a populist rallying cry,” the executive said. The president’s “tariff policy is impossible for us to predict and doesn’t have a clear goal,” the person said, calling for “stability.”
“I have never felt more uncertainty about our business in my entire 40-plus-year career,” another executive told the Dallas Fed.
U.S. Energy Secretary Chris Wright acknowledged Tuesday that tumbling prices will worry oil producers. Wright, the founder and former CEO of natural gas fracking company Liberty Energy, argued that Trump will drive down producers’ costs by removing uncertainty around permitting and approving more pipelines and export terminals, allowing them to pump at lower prices.
“Lower prices are good for consumers, and as producers get lower and lower cost structure, they’re going to thrive at lower prices as well,” Wright told CNBC’s “Money Movers.” “What you’re seeing right now is the fear and uncertainty as the sausage is being made,” he said of Trump’s tariff policy.
The unpredictability caused by Trump’s tariffs has also hit the stock of the company Wright founded. Liberty’s shares are down 32% since April 2.
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Mazda is finally about to launch a real electric SUV: Here’s our first look at the new EZ-60
It’s about the size of a Tesla Model Y and surprisingly stylish. Mazda revealed the new EZ-60 on Thursday, giving us our first look at the new electric SUV that will be sold globally.
Mazda unveils first look at the new EZ-60 electric SUV
The EZ-60 is a “dream car” designed by Mazda’s joint venture partner in China, Changan Mazda. It will be the second EV, following the EZ-6 electric sedan launched last October.
After revealing the first official images on Thursday, Changan Mazda said its new electric SUV will be “another masterpiece of the brand’s new energy strategy.”
Based on Changan’s EPA1 platform, the EZ-60 will be a sibling to the Deepal S07 crossover SUV. It will arrive with similar specs and powertrain configurations. The S07 is powered by a 79.97 kWh battery, good for WLTP range of 295 miles. With charging rates at 93 kW, the electric SUV can fast charge (30% to 80%) in 35 mins.
Since the Deepal S07 is 4,750 mm long, 1,930 mm wide, and 1,625 mm, Mazda’s electric SUV is expected to be about the same size. That’s about the size of a Tesla Model Y at 4,750 mm long, 1,920 mm wide, and 1,624 mm tall.
Like the EZ-6, the electric SUV features Mazda’s new “Soul of Motion” design, which includes a full-length light bar across the front, slim LED headlights, and a redesigned logo.
Changan Mazda said the integrated D-pillar air duct design is the first for a new energy SUV model. The design not only looks sleek, but it improves its aerodynamics.
Although the interior will be revealed later this month, it will likely include a similar setup to the EZ-6. The revamped interior features 14.6″ infotainment and 10.1″ driver display screens. Other premium features like zero-gravity reclining seats and a 50″ virtual head-up display add to the “Smart Cabin” interior.
Mazda’s first 6e model, the global version of the EZ-6, rolled off the production line last week. Built at Changan Mazda’s plant in China, the electric sedan will be exported to Europe, Thailand, and other global markets.
In China, the EZ-6 starts at 139,800, or about $20,000, with a CLTC driving range of up to 600 km (372 miles). It will be available in Europe with two battery options, 68.8 kWh and 80 kWh, providing 479 km (300 miles) and 552 km (343 miles) of WLTP driving range.
Changan Mazda will unveil the new EZ-60 electric SUV on April 23 at the Shanghai International Auto Show. Check back soon for more updates.
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