Bank of America backs SEC proposal for climate risk disclosures

(Reuters) – Bank of America on Friday threw its support behind the securities regulator’s proposal requiring U.S.-listed companies to disclose their climate-related risks and greenhouse gas emissions.

The U.S. Securities and Exchange Commission unveiled the draft rule last month, aiming to help investors better understand the “actual or likely material impacts” climate-related risks will have on a company’s business, strategy and outlook.

“We think the proposal is constructive and headed in the right direction,” said Paul Donofrio, head of sustainability at Bank of America, the country’s second-biggest bank by assets.

Among the proposed rule’s key requirements, companies must disclose their own direct and indirect greenhouse gas emissions, known as Scope 1 and 2 emissions, as well as those generated by suppliers and partners, known as Scope 3…