CFO Slice

Major U.S. public pension funds and business groups have taken opposing positions on the SEC’s proposal to rescind its climate risk disclosure rule, highlighting a growing divide over corporate climate reporting. Pension funds including CalPERS, CalSTRS, and the New York State Common Retirement Fund argued that eliminating the rule would leave investors with inconsistent, more expensive, and less reliable climate data, while business groups such as the Business Roundtable and the American Petroleum Institute said rescinding the rule would reduce unnecessary compliance costs and focus disclosures on financially material information. Large asset managers adopted more nuanced positions. Vanguard supported avoiding overly burdensome reporting requirements but said standardized disclosure of material climate risks helps investors make better-informed decisions. The debate comes as several states move ahead with their own climate reporting rules, potentially creating a patchwork of requirements.