Bank of America: SEC ‘moving in the right direction’ on climate risk rule

NEW YORK, April 8 (Reuters) – Bank of America (BAC.N) on Friday voiced support for the securities regulator’s proposal to require U.S.-listed companies to disclose their climate-related risks and their greenhouse gas emissions.

The U.S. Securities and Exchange Commission (SEC) unveiled the proposed rule last month, aimed at helping investors better understand the “actual or likely impacts” climate-related risks will have on business, strategy and business prospects. Read more

“We believe the proposal is constructive and goes in the right direction,” said Paul Donofrio, chief sustainability officer at Bank of America, the nation’s second-largest bank by assets.

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The bank is still reviewing the SEC’s more than 500-page draft rule and plans to submit a comment letter before the regulator’s deadline.

Among the key requirements of the proposed rule, companies must disclose their own direct and indirect greenhouse gas emissions, known as Scope 1 and 2 emissions, as well as those generated by suppliers and partners, known as Scope 3 emissions.

“We all agree with this notion of companies providing the market with information that will help everyone understand what a company’s emissions status is and what its plans are to get to net zero…so that players of the market can allocate capital to the best and highest use,” Donofrio told reporters.

Donofrio, who spent six years as the bank’s chief financial officer, warned that scope 3 emissions are currently difficult to calculate accurately for the majority of companies, but said the bank supports the gradual introduction of such emissions. disclosures later.

“Scope three disclosures today could be subject to a lot of uncertainty, would not get assurance, so would not be trustworthy and it could call other disclosures into question,” Donofrio said. .

He added that the bank supports a price on carbon, which could reflect “its true cost to society so that people see the value of these investments”.

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Reporting by Elizabeth Dilts Marshall Additional reporting by Simon Jessop in London Editing by David Goodman and David Gregorio

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Shawanda H. Saldana