# Climate Risk Disclosure Act of 2021

This bill requires large companies to publicly report how climate change might affect their business and finances. Right now, many companies keep this information private or don't measure it systematically. The bill would change that by making climate risk reporting a standard requirement, similar to how companies already have to report their financial health to investors.

Here's what this means in practical terms: If you own stock in a company or have money in a retirement fund, you'd get clearer information about whether that company is vulnerable to climate-related problems. For example, a company that depends on water for manufacturing would have to disclose if droughts could disrupt their operations. A coastal real estate developer would need to report flood risks. An insurance company would have to explain how extreme weather might affect their business. This transparency helps investors make better decisions about where to put their money and understand the real risks they're taking on.

The bill would primarily affect large corporations and financial institutions—the companies that have significant climate exposure and the resources to track and report this data. Smaller businesses wouldn't face the same requirements. For everyday people, the main benefit is getting a clearer picture of which companies are prepared for climate challenges and which ones might face serious problems. This information could influence stock prices, insurance costs, and ultimately how companies invest in climate resilience. Banks and investment firms would also have to disclose their climate risks, which could affect lending practices and what kinds of projects get funded.

Climate Risk Disclosure Act of 2021

Warren, Elizabeth

Climate Risk Disclosure Act of 2021 This bill directs the Securities and Exchange Commission to&nbsp;require an issuer of securities to annually disclose information regarding climate change-related risks posed to the issuer, including an issuer's strategies and actions to mitigate these risks. Specifically, issuers must report their direct and indirect greenhouse-gas emissions and disclose their fossil fuel-related assets.