CEOs will be embarrassed

“Corporate CEOs who have been actively lobbying for cap-and-trade climate legislation may soon find themselves in an embarrassing position thanks to a new Securities and Exchange Commission regulation, says Tom Borelli, Ph.D., director of the National Center for Public Policy Research’s Free Enterprise Project.

The SEC voted January 27 to provide public companies with interpretive guidance that encourages corporations to disclose the possible business and legal impact of climate change to shareholders. Full disclosure will require companies to assess and describe how cap-and-trade legislation can harm company earnings.

“Fully disclosing the business risk of cap-and-trade will embarrass many CEOs who are lobbying for emissions regulations. Shareholders will discover that these CEOs are pursuing legislation that will negatively impact their company,” said Borelli.  …

“Finally, the SEC is taking a position on the business risk of climate change regulation.  … While CEOs find it easy to ignore an individual shareholder, they can’t ignore the SEC,” said Borelli.

“Shareholders are going to discover that many CEOs have not been forthcoming about the business risk posed by cap-and-trade legislation and that they have failed to exercise their fiduciary responsibility by not assessing and communicating the impact of emissions regulations on their businesses.””  “New SEC Guidance on Climate Change Disclosure Will Force CEOs Who Lobby for Cap-and-Trade to Expose the Business Risk of Cap-and-Trade Legislation to Shareholders”  Prior post here

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