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2d ago

Norway’s $2 Trillion Sovereign Fund Opposes SEC Plan to Scrap Climate Disclosures

NBIM says baseline, financially material climate disclosures are essential for investor risk assessment, urging the SEC to consider phased alternatives that limit cost burdens.

Signage is seen at the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly/File Photo
Norway bank
Via top1000funds.com

Overview

  • NBIM, which filed formal comments on Friday, Aug. 7, opposed the SEC’s May proposal to rescind the 2024 climate-related disclosure rules and recommended phased or narrowed approaches that would keep core financial disclosures.
  • The fund said narrative climate disclosures add context to financial statements and help it make investment, voting and risk-management decisions for a portfolio that is more than half invested in the U.S.
  • NBIM proposed specific alternatives to full repeal that aim to address the SEC’s concerns about scope and compliance costs while preserving disclosures that are material to a company’s financial condition.
  • Other large institutional investors including Sweden’s AP7, California’s CalSTRS and several New York public pension funds also opposed outright rescission during the closed comment period, signaling broad investor resistance.
  • The 2024 rules have not taken effect because of ongoing legal challenges, so the SEC must weigh investor feedback and litigation risks before issuing a final decision that could reshape how companies report climate-related financial risks.