Commercial real estate industry faces SEC climate disclosure regulations

The U.S. Securities and Exchange Commission is considering new rules that would mandate publicly traded property ownership companies disclose risks from environmental impacts.

Recently testifying before the Senate Committee on Banking, Housing, and Urban Affairs, SEC chair Gary Gensler said he has directed his staff to develop proposals on how the new disclosure rules could be implemented. The proposals will be put out to public comment to help find what information matters most to investors.

Gensler noted that investors increasingly want to understand the climate risks of public companies. Few companies today provide metrics on climate risks for investors to consider when deciding whether to purchase and own stock in them.

There is widespread support within the investor community for specific metrics and principles-based climate disclosure requirements.