determines, after notice and comment, to con-
tribute to climate change; 
(11) the term ‘‘greenhouse gas emissions’’ means 
the emissions of greenhouse gas, expressed in terms of 
metric tons of carbon dioxide equivalent; 
(12) the term ‘‘physical risks’’ has meaning 
given the term in section 13(s) of the Securities Ex-
change Act of 1934; 
(13) the term ‘‘social cost of carbon’’ means the 
monetized present value, discounted at a 3 percent or 
lower discount rate, in dollars, per metric ton of car-
bon dioxide (or carbon dioxide equivalent), of the net 
global costs over 300 years caused by the emission of 
carbon dioxide (or carbon dioxide equivalent, as ap-
plicable) that result from— 
(A) changes in net agricultural produc-
tivity; 
(B) decreases in capital and labor produc-
tivity; 
(C) effects on human health; 
(D) property damage from increased sea 
level rise, flooding, wildfires, and frequency and 
severity of extreme weather events; 
(E) the value of ecosystem services; and 
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(F) any other type of economic, social, po-
litical, or natural disruption; 
(14) the term ‘‘transition risks’’ has meaning 
given the term in section 13(s) of the Securities Ex-
change Act of 1934. 
(15) the term ‘‘value chain’’— 
(A) means the total lifecycle of a product or 
service, both before and after production of the 
product or service, as applicable; and 
(B) may include the sourcing of materials, 
production, and disposal with respect to the 
product or service described in subparagraph 
(A); and 
(16) the term ‘‘well below 1.5 degrees scenario’’ 
means a widely-recognized, publicly-available anal-
ysis scenario in which human interventions to combat 
global climate change are likely to prevent the global 
average temperature from reaching 1.5 degrees Celsius 
above pre-industrial levels. 
SEC. 3. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) climate change poses a significant and in-
creasing threat to the growth and stability of the 
economy of the United States; 
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(2) many sectors of the economy of the United 
States and many American businesses are exposed to 
multiple channels of climate-related risk, which may 
include exposure to— 
(A) the physical impacts of climate change, 
including the rise of the average global tempera-
ture, accelerating sea-level rise, desertification, 
ocean acidification, intensification of storms, in-
crease in heavy precipitation, more frequent and 
intense 
temperature 
extremes, 
more 
severe 
droughts, and longer wildfire seasons; 
(B) the economic disruptions and security 
threats that result from the physical impacts de-
scribed in subparagraph (A) including conflicts 
over scarce resources, conditions conducive to 
violent extremism, the spread of infectious dis-
eases, and forced migration; and 
(C) the transition impacts that result as the 
global economy transitions to a clean and renew-
able energy, low-emissions economy, including fi-
nancial impacts as fossil fuel assets risk becom-
ing stranded and it becomes uneconomic for com-
panies to develop fossil fuel assets as policy-
makers act to limit the worst impacts of climate 
change by keeping the rise in average global tem-
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perature to 1.5 degrees Celsius above pre-indus-
trial levels; 
(3) assessing the potential impact of climate-re-
lated risks on national and international financial 
systems is an urgent concern; 
(4) companies have a duty to disclose financial 
risks that climate change presents to their investors, 
lenders, and insurers; 
(5) 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 futures; 
(6) investors, lenders, and insurers are increas-
ingly demanding climate risk information that is 
consistent, comparable, reliable, and clear; 
(7) including standardized, material climate 
change risk and opportunity disclosure that is useful 
for decision makers in annual reports to the Commis-
sion will increase transparency with respect to risk 
accumulation and exposure in financial markets; 
(8) requiring companies to disclose climate-re-
lated risk exposure and risk management strategies 
will encourage a smoother transition to a clean and 
renewable energy, low-emissions economy and guide 
capital allocation to mitigate, and adapt to, the ef-
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fects of climate change and limit damages associated 
with climate-related events and disasters; and 
(9) a critical component in fighting climate 
change is a transparent accounting of the risks that 
climate change presents and the implications of con-
tinued inaction with respect to climate change. 
SEC. 4. FINDINGS. 
Congress finds that— 
(1) short-, medium-, and long-term financial 
and economic risks and opportunities relating to cli-
mate change, and the national and global reduction 
of greenhouse gas emissions, constitute information 
that issuers— 
(A) may reasonably expect to affect share-
holder decision making; and 
(B) should regularly identify, evaluate, and 
disclose; and 
(2) the disclosure of information described in 
paragraph (1) should— 
(A) identify, and evaluate— 
(i) material physical and transition 
risks posed by climate change; and 
(ii) the potential financial impact of 
such risks; 
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