,,ii  #aaeth ,,congress  #b;d ,session  
,s4 #cdha  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #bd1
 #bjah,ms4 ,warren 7for herself1 ,mr4   
,whitehouse1 ,mr4 ,schatz1 ,mr4 ,markey1
 ,mr4 ,booker1 ,mr4 ,merkley1 ,ms4      
,harris1 and ,mrs4 ,gillibrand7         
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,banking1 ,housing1 and   
,urban ,affairs  ,a ,,bill  ,to amend   
the ,securities ,exchange ,act of #aicd 
to require issuers to disclose certain  
activities relating to climate change1  
and for other purposes4  #a4 ,short     
title ,this ,act may be cited as the    
,climate ,risk ,disclosure ,act of      
#bjah4  #b4 ,definitions  ,in this      
,act-- 7#a7 the term appropriate climate
 principals means--  7,a7 the           
,administrator of the ,environmental    
,protection ,agency2  7,b7 the          
,secretary of ,energy2  7,c7 the        
,administrator of the ,national ,oceanic
 and ,atmospheric ,administration2  7,d7

 the ,director of the ,office of        
,management and ,budget2 and  7,e7 the  
head of any other ,federal agency       
determined appropriate by the           
,commission2  7#b7 the term appropriate 
congressional committees means--  7,a7  
the ,committee on ,banking1 ,housing1   
and ,urban ,affairs of the ,senate2 and 
7,b7 the ,committee on ,financial       
,services of the ,house of              
,representatives2  7#c7 the term climate
 change means a change of climate that  
is-- 7,a7 attributed directly or        
indirectly to human activity that alters
 the composition of the global          
atmosphere2 and  7,b7 in addition to    
natural climate variability observed    
over comparable time periods2  7#d7 the 
term ,commission means the ,securities  
and ,exchange ,commission2 and  7#e7 the
 term covered issuer has the meaning    
given the term in subsection 7s77#a7 of 
section #ac of the ,securities ,exchange
 ,act of #aicd 7#ae ,u4,s4,c4 #ghm71 as 
added by section #d7;a74  #c4 ,sense of 

,congress  ,it is the sense of ,congress
 that-- 7#a7 continued inaction in      
addressing climate change poses a       
significant threat to the growth and    
stability of the economy of the ,united 
,states2  7#b7 many sectors of the      
economy of the ,united ,states are      
exposed to multiple channels of         
climate-related risk1 which may include 
exposure to--  7,a7 the physical impacts
 of climate change1 including the rise  
of the average global temperature1      
sea-level rise1 desertification1 ocean  
acidification1 flooding1 drought1 and   
wildfires2  7,b7 the economic           
disruptions and security threats that   
result from the physical impacts        
described in subparagraph 7,a72 and     
7,c7 the transition impacts that result 
as the global economy transitions to a  
clean energy1 low-emissions economy1    
including financial impacts as fossil   
fuel assets become stranded as the      
global community acts to prevent the    
worst impacts of climate change by      

keeping the average rise in global      
temperature well below #b degrees       
,celsius above pre-industrial levels2   
7#c7 assessing the potential impact of  
climate-related risks on national and   
international financial systems is an   
urgent concern2  7#d7 companies have a  
duty to disclose financial risks that   
climate change presents2  7#e7 the      
,commission has a duty to promote a     
risk-informed securities market that is 
worthy of the trust of the public as    
families invest for their futures2  7#f7
 including standardized climate change  
risk disclosure that is useful for      
decision makers in annual reports to the
 ,commission will increase transparency 
with respect to risk accumulation and   
exposure in financial markets2  7#g7    
requiring companies to disclose         
climate-related risk exposure and risk  
management strategies will encourage a  
smooth transition to a clean energy1    
low-emissions economy and guide capital 
allocation to mitigate1 and adapt to1   

the effects of climate change2 and  7#h7
 a critical component in fighting       
climate change is a transparent         
accounting of the risks that climate    
change presents and the implications of 
continued inaction with respect to      
climate change4  #d4 ,disclosure  7a7   
,in general ,section #ac of the         
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #ghm7 is amended by adding at
 the end the following3  7s7            
,disclosures relating to climate change 
7#a7 ,definitions ,in this subsection-- 
7,a7 the term #b degrees or lower       
scenario means a widely recognized1     
publicly available analysis scenario in 
which human interventions to combat     
global climate change are likely to     
prevent the global average temperature  
from reaching #b degrees ,celsius above 
pre-industrial levels2  7,b7 the terms  
appropriate climate principals and      
climate change have the meanings given  
those terms in section #b of the        
,climate ,risk ,disclosure ,act of      

#bjah2  7,c7 the term baseline scenario 
means a widely recognized analysis      
scenario in which levels of greenhouse  
gas emissions1 as of the date on which  
the analysis is performed1 continue to  
grow1 resulting in--  7i7 an increase in
 the global average temperature of #b   
degrees ,celsius or more above          
pre-industrial levels2 and  7ii7 the    
realization of physical risks relating  
to global climate change2  7,d7 the term
 carbon dioxide equivalent means the    
quantity of a greenhouse gas that has a 
global warming potential equivalent to  
#a metric ton of carbon dioxide1 as     
determined under table ,a-#a of subpart 
,a of part #ih of title #dj1 ,code of   
,federal ,regulations1 as in effect on  
the date of enactment of this           
subsection2  7,e7 the term commercial   
development of fossil fuels includes--  
7i7 exploration1 extraction1 processing1
 exporting1 transporting1 and any other 
significant action with respect to oil1 
natural gas1 or coal2 and  7ii7         

acquiring a license for any activity    
described in clause 7i72  7,f7 the term 
covered issuer means an issuer that is  
required to file an annual report under 
subsection 7a7 or section #ae7;d72  7,g7
 the term direct and indirect greenhouse
 gas emissions includes1 with respect to
 a covered issuer--  7i7 all direct     
greenhouse gas emissions released by the
 covered issuer2  7ii7 all indirect     
greenhouse gas emissions with respect to
 electricity1 heat1 or steam purchased  
by the covered issuer2  7iii7           
significant indirect emissions1 other   
than the emissions described in clause  
7ii71 that occur in the value chain of  
the covered issuer2 and  7iv7 all       
indirect greenhouse gas emissions that  
are attributable to assets owned or     
managed1 including assets that are      
partially owned or managed1 by the      
covered issuer2  7,h7 the term fossil   
fuel reserves means all producing       
assets1 proved reserves1 unproved       
resources1 and any other ownership stake

 in sources of fossil fuels2  7,i7 the  
term greenhouse gas-- 7i7 means carbon  
dioxide1 hydrofluorocarbons1 methane1   
nitrous oxide1 perfluorocarbons1 and    
sulfur hexafluoride2 and  7ii7 includes 
any other anthropogenically emitted gas 
or particulate that the ,administrator  
of the ,environmental ,protection       
,agency determines1 after notice and    
comment1 to contribute to global        
warming2  7,j7 the term greenhouse gas  
emissions means the emissions of        
greenhouse gas1 expressed in terms of   
metric tons of carbon dioxide           
equivalent2  7,k7 the term physical     
risks means financial risks to          
long-lived fixed assets1 locations1     
operations1 or value chains that result 
from exposure to physical               
climate-related effects1 including--    
7i7 increased average global            
temperatures2  7ii7 increased severity  
and frequency of extreme weather events2
  7iii7 increased flooding2  7iv7 sea   
level rise2  7v7 ocean acidification2   

7vi7 increased frequency of wildfires2  
7vii7 decreased arability of farmland2  
and  7viii7 decreased availability of   
fresh water2  7,l7 the term social cost 
of carbon means the monetized present   
value1 discounted at a #c percent or    
lower discount rate1 in dollars1 per    
metric ton of carbon dioxide 7or carbon 
dioxide equivalent71 of the net global  
costs over #cjj years caused by the     
emission of carbon dioxide 7or carbon   
dioxide equivalent1 as applicable7 that 
result from--  7i7 changes in net       
agricultural productivity2  7ii7        
decreases in capital and labor          
productivity2  7iii7 effects on human   
health2  7iv7 property damage from      
increased sea level rise1 flooding1     
wildfires1 and frequency and severity of
 extreme weather events2  7v7 the value 
of ecosystem services2 and  7vi7 any    
other type of economic1 social1         
political1 or natural disruption2  7,m7 
the term transition risks means         
financial risks that are attributable to

 climate change mitigation and          
adaptation1 including efforts to reduce 
greenhouse gas emissions and strengthen 
resilience to the impacts of climate    
change1 including--  7i7 costs relating 
to-- 7,i7 international treaties and    
agreements2  7,,ii7 ,federal1 ,state1   
and local policy2  7,,iii7 new          
technologies2  7,,iv7 changing markets2 
7,v7 reputational impacts relevant to   
changing consumer behavior2 and  7,,vi7 
litigation2 and  7ii7 assets that may   
lose value or become stranded due to any
 of the costs described in subclauses   
7,i7 through 7,,vi7 of clause 7i72 and  
7,n7 the term value chain-- 7i7 means   
the total lifecycle of a product or     
service1 both before and after          
production of the product or service1 as
 applicable2 and  7ii7 may include the  
sourcing of materials1 production1 and  
disposal with respect to the product or 
service described in clause 7i74  7#b7  
,findings ,congress finds that-- 7,a7   
long-term financial and economic risks  

and opportunities relating to climate   
change1 and the national and global     
reduction of greenhouse gas emissions1  
constitute information that issuers--   
7i7 may reasonably expect to affect     
shareholder decisionmaking2 and  7ii7   
should regularly identify1 evaluate1 and
 disclose2 and  7,b7 the disclosure of  
information described in subparagraph   
7,a7 should-- 7i7 identify1 and evaluate
 the potential financial impact of1     
physical risks and transition risks     
posed by climate change2  7ii7 allow for
 intra- and cross-industry comparison1  
to the extent practicable1 of           
climate-related risk exposure through   
the inclusion of standardized           
industry-specific and sector-specific   
disclosure metrics1 as identified by the
 ,commission1 in consultation with the  
appropriate climate principals2  7iii7  
allow for tracking of performance over  
time with respect to mitigating climate 
risk exposure2 and  7iv7 incorporate a  
price on greenhouse gas emissions in    

financial analyses that reflects1 at    
minimum1 the social cost of carbon that 
is attributable to issuers4  7#c7       
,disclosure ,each covered issuer1 in any
 annual report filed by the covered     
issuer under subsection 7a7 or section  
#ae7;d71 shall1 in accordance with the  
requirements established under          
paragraphs 7#d7 and 7#e71 include in    
each such report information regarding--
  7,a7 the identification of1 the       
evaluation of potential financial       
impacts of1 and any risk-management     
strategies relating to--  7i7 physical  
risks posed to the covered issuer by    
climate change2 and  7ii7 transition    
risks posed to the covered issuer by    
climate change2 and  7,b7 a description 
of any established corporate governance 
processes and structures to identify1   
assess1 and manage climate-related      
risks4  7#d7 ,requirements  7,a7 ,in    
general ,the ,commission1 in            
consultation with the appropriate       
climate principals1 and consistent with 

subparagraph 7,b71 shall issue final    
rules with respect to the information   
that a covered issuer is required to    
disclose under paragraph 7#c74  7,b7    
,contents ,in issuing the final rules   
required under subparagraph 7,a71 the   
,commission shall-- 7i7 establish1 in   
consultation with the appropriate       
climate principals1 climate-related risk
 disclosure metrics and guidance1 which 
shall--  7,i7 be1 to the extent         
practicable1 specialized for industries 
within specific sectors of the economy1 
which shall include--  7aa7 the sectors 
of finance1 insurance1 transportation1  
electric power1 and non-renewable       
energy2 and  7bb7 any other sector      
determined appropriate by the           
,commission1 in consultation with the   
appropriate climate principals2  7,,ii7 
include reporting standards for         
estimating and disclosing direct and    
indirect greenhouse gas emissions by a  
covered issuer1 and any affiliates of   
the covered issuer1 which shall--  7aa7 

separate1 to the extent practicable1    
total emissions of each specified       
greenhouse gas by the covered issuer2   
and  7bb7 include greenhouse gas        
emissions by the covered issuer during  
the period covered by the disclosure2   
7,,iii7 include reporting standards and 
metrics for disclosing1 with respect to 
a covered issuer--  7aa7 the total      
amount of fossil fuel-related assets    
owned or managed by the covered issuer2 
and  7bb7 the percentage of fossil      
fuel-related assets as a percentage of  
total assets owned or managed by the    
covered issuer2  7,,iv7 establish a     
minimum social cost of carbon1 which--  
7aa7 shall be considered a minimum price
 with respect to costs associated with  
carbon emissions2 and  7bb7 a covered   
issuer shall use in preparing           
climate-related disclosure statements2  
7,v7 not preclude a covered issuer from 
using and disclosing1 as compared with  
the price established under subclause   
7,,iv77aa71 a higher price of greenhouse

 gas emissions2  7,,vi7 specify         
requirements for1 and the disclosure of1
 input parameters1 assumptions1 and     
analytical choices to be used in climate
 scenario analyses required under clause
 7ii77,i71 including--  7aa7 present    
value discount rates2  7bb7 time frames 
to consider1 which shall be not shorter 
than #cj years2 and  7cc7 minimum       
pricing of greenhouse gas emissions1 as 
established under subclause 7,,iv77aa7  
and subject to subclause 7,v72 and      
7,,vii7 include1 after consultation with
 the ,secretary of ,energy1 the         
,secretary of the ,interior1 and the    
,secretary of ,transportation1          
documentation standards and guidance    
with respect to the information required
 under clause 7ii77,,iii72  7ii7 require
 that a covered issuer1 with respect to 
the disclosure required under paragraph 
7#c7-- 7,i7 incorporate into the        
disclosure--  7aa7 quantitative analysis
 to support any qualitative statement   
made by the covered issuer2  7bb7 the   

metrics and guidance established under  
clause 7i72  7cc7 industry-specific     
metrics that comply with the            
requirements under clause 7i77,i72  7dd7
 a discussion of the short-1 medium-1   
and long-term resilience of any risk    
management strategy1 and the evolution  
of applicable risk metrics1 of the      
covered issuer under each scenario      
described in subclause 7,,ii72 and  7ee7
 the total social cost of carbon        
emissions that are attributable to the  
direct and indirect greenhouse gas      
emissions of the covered issuer2  7,,ii7
 consider1 when preparing any           
qualitative or quantitative risk        
analysis statement contained in the     
disclosure--  7aa7 a baseline scenario  
that includes physical impacts of       
climate change2  7bb7 a #b degrees or   
lower scenario2 and  7cc7 any additional
 climate analysis scenario considered   
appropriate by the ,commission1 in      
consultation with the appropriate       
climate principals2  7,,iii7 if the     

covered issuer engages in the commercial
 development of fossil fuels1 include in
 the disclosure--  7aa7 an estimate of  
the amount of direct and indirect       
greenhouse gas emissions of the covered 
issuer that are attributable to-- 7,,aa7
 combustion2 7,,bb7 flared hydrocarbons2
 7,,cc7 process emissions2 7,,dd7       
directly vented emissions2 7,,ee7       
fugitive emissions or leaks2 and 7,,ff7 
land use changes2  7bb7 a description   
of-- 7,,aa7 the sensitivity of fossil   
fuel reserve levels to future price     
projection scenarios that incorporate   
the social cost of carbon into          
hydrocarbon pricing2 7,,bb7 the         
percentage of the reserves of the       
covered issuer that will be developed   
under a #b degrees or lower scenario1 as
 well as a forecast for the development 
prospects of each reserve under a #b    
degrees or lower scenario2 7,,cc7 the   
potential amount of direct and indirect 
greenhouse gas emissions that are       
embedded in proved and probable         

hydrocarbon reserves1 with each such    
calculation presented as a total and in 
subdivided categories by the type of    
reserve2 7,,dd7 the methodology of the  
covered issuer for detecting and        
mitigating fugitive methane emissions1  
which shall include the frequency with  
which applicable assets of the covered  
issuer are observed for methane leaks1  
the processes and technology that the   
covered issuer uses to detect methane   
leaks1 the percentage of assets of the  
covered issuer that the covered issuer  
inspects under that methodology1 and    
quantitative and time-bound reduction   
goals of the issuer with respect to     
methane leaks2 7,,ee7 the amount of     
water that the covered issuer withdraws 
from freshwater sources for use in      
operations of the covered issuer2 and   
7,,ff7 the percentage of the water      
described in subitem 7,,ee7 that comes  
from regions of water stress or that    
face wastewater management challenges2  
and  7cc7 any other information that the

 ,commission1 in consultation with the  
appropriate climate principals and the  
,secretary of ,energy1 the ,secretary of
 the ,interior1 and the ,secretary of   
,transportation1 determines is-- 7,,aa7 
necessary2 7,,bb7 appropriate to        
safeguard the public interest2 or 7,,cc7
 directed at ensuring that investors are
 informed in accordance with the        
findings described in paragraph         
7#b77;,b72 and  7iii7 with respect to   
the disclosure required under paragraph 
7#c71 require that the covered issuer   
include in the disclosure any other     
information1 or use any climate-related 
or greenhouse gas emissions metric1 that
 the ,commission1 in consultation with  
the appropriate climate principals1     
determines is--  7,i7 necessary2  7,,ii7
 appropriate to safeguard the public    
interest2 or  7,,iii7 directed at       
ensuring that investors are informed in 
accordance with the findings described  
in paragraph 7#b77;,b74  7#e7           
,formatting  7,a7 ,in general ,any      

information included pursuant to the    
requirements of this subsection by a    
covered issuer in an annual report      
submitted under subsection 7a7 or       
section #ae7;d7 shall be submitted in an
 interactive data format4  7,b7         
,establishment by ,commission ,the      
,commission shall develop standards for 
the interactive data format described in
 subparagraph 7,a71 which shall include 
electronic tags for information that the
 ,commission determines is--  7i7       
necessary2  7ii7 appropriate to         
safeguard the public interest2 or  7iii7
 directed at ensuring that investors are
 informed in accordance with the        
findings described in paragraph         
7#b77;,b74  7#f7 ,public availability   
,the ,commission shall1 to the maximum  
extent practicable1 make a compilation  
of the information submitted by covered 
issuers under this subsection publicly  
available on the website of the         
,commission4  7#g7 ,rule of construction
 ,nothing in paragraph 7#c7 or 7#d7 may 

be construed as precluding a covered    
issuer from including1 in an annual     
report submitted under subsection 7a7 or
 section #ae7;d71 any information not   
explicitly referenced in those          
paragraphs4  4  7b7 ,regulations  7#a7  
,in general ,not later than #a year     
after the date of enactment of this     
,act1 the ,commission1 in consultation  
with the appropriate climate principals1
 shall issue final rules to establish   
appropriate documentation standards1    
metrics for calculations required1 and  
guidance with respect to the disclosure 
requirements under subsection 7s7 of    
section #ac of the ,securities ,exchange
 ,act of #aicd 7#ae ,u4,s4,c4 #ghm71 as 
added by subsection 7a7 of this section4
  7#b7 ,periodic updates ,the           
,commission shall periodically update   
the rules issued under paragraph 7#a7 to
 ensure that those rules further the    
purposes described in subsection        
7s77#b77;,b7 of section #ac of the      
,securities ,exchange ,act of #aicd 7#ae

 ,u4,s4,c4 #ghm71 as added by subsection
 7a7 of this section4  #e4 ,reports  7a7
 ,securities and ,exchange ,commission  
,the ,commission shall-- 7#a7 conduct an
 annual assessment regarding the        
compliance of covered issuers with the  
requirements of subsection 7s7 of       
section #ac of the ,securities ,exchange
 ,act of #aicd 7#ae ,u4,s4,c4 #ghm71 as 
added by section #d7;a72  7#b7 submit to
 the appropriate congressional          
committees a report that contains the   
results of each assessment conducted    
under paragraph 7#a72 and  7#c7 make    
each report submitted under paragraph   
7#b7 accessible to the public4  7b7     
,government ,accountability ,office ,the
 ,comptroller ,general of the ,united   
,states shall periodically evaluate1 and
 report to the appropriate congressional
 committees on1 the effectiveness of the
 ,commission in carrying out and        
enforcing subsection 7s7 of section #ac 
of the ,securities ,exchange ,act of    
#aicd 7#ae ,u4,s4,c4 #ghm71 as added by 

section #d7;a74  #f4 ,severability  ,if 
any provision of this ,act1 an amendment
 made by this ,act1 or the application  
of this ,act 7or an amendment made by   
this ,act7 to any person or circumstance
 is held to be invalid1 that holding    
shall have no effect with respect to--  
7#a7 the remainder of this ,act2 and    
7#b7 the application of the provision or
 amendment1 as applicable1 to any other 
person or circumstance4  #g4            
,authorization of appropriations ,there 
are authorized to be appropriated to the
 ,commission such sums as may be        
necessary to carry out this ,act4