SEC CORNER

Recently, the U.S. Securities and Exchange Commission (“SEC”) approved five investor proposals seeking to force insurance companies to disclose more about their emissions and underwriting of fossil fuel risks. One proposal approved by the SEC would require publicly registered insurers to provide additional information about direct and indirect greenhouse gas emissions. Meanwhile, state insurance regulators have also stepped-up efforts to require more disclosures about insurer climate activities.

While insurance companies have been publicizing their efforts to move away from underwriting pollutants such as coal and tar sands, shareholders are also advocating for a change in business practices given that climate disasters are driving record insurance losses. Investor campaigns aim to require insurance companies to make stronger climate disclosures as part of a larger drive to help ensure companies are not contributing to climate change through underwriting or emissions.