Ceres, led by 2006 Skoll social entrepreneur Mindy Lubber, is celebrating an important move by the SEC on climate risk - a move Ceres has been fighting for for a number of years.  The SEC put out yesterday “new interpretive guidance that clarifies what publicly-traded companies need to disclose to investors in terms of climate-related ‘material’ effects on business operations, whether from new emissions management policies, the physical impacts of changing weather or business opportunities associated with the growing clean energy economy.” Per Ceres, this is the first economy-wide climate risk disclosure requirement in the world.  A major focus of Ceres’ work has been to coalesce institutional investors to bring pressure to bear on regulators to require more stringent climate risk disclosure rules.

Per Mindy, in the press release: “Today’s vote is a clarion call about the vast risks and opportunities climate change poses for US companies and the urgency for integrating them into investment decision making. The business risks of climate change cannot be ignored. With this guidance, investors can make more sound decisions based on better information – and businesses will have a level-playing field with clear standards and expectations for disclosure.”

Given the lack of progress in Copenhagen on a binding global agreement with teeth, this type of industry-driven approach to addressing climate change is likely to be where real progress is made.  Ceres has been instrumental in making the institutional investor sector one of the more progressive sectors on climate.  Congratulations to Mindy and team for this big win.