U.S. states weigh in on climate change initiatives

As the Biden administration continues to ramp up efforts to address climate change at the federal level, numerous U.S. states are weighing in. 

On June 14, 2021, a coalition of 12 state attorneys general, led by California AG Rob Bonta, called on the Securities and Exchange Commission (SEC) to require U.S. companies to provide detailed and accurate information about the financial risk they face from climate change. Specifically, the state AGs would like to see companies make annual disclosures of their greenhouse gas emissions and their plans to address emissions; analyze and disclose the potential impacts of climate change and climate change regulation; and disclose corporate governance and risk management pertaining to climate change. The SEC has placed climate-risk disclosures on its official Spring 2021 agenda and is currently seeking input on proposed rules. 

Meanwhile, Maine last week became the first U.S. state to pass legislation committing to fossil fuel divestment, directing state officials not to invest in any company in the oil, gas, or coal industries, with some short-term exceptions, and to divest any existing fossil fuel holdings “in accordance with sound investment criteria and consistent with fiduciary obligations.” The text of the bill, which is pending signature from the state Governor, can be read here.