The government wants companies to disclose their risks from climate change

Financial regulators have unveiled sweeping new rules that would require companies to disclose the greenhouse gas emissions they produce and how climate risk affects their business — part of a drive from the Biden administration to address climate change.

Under the rules, proposed Monday by the U.S. Securities and Exchange Commission, publicly traded companies would have to report on their climate risks, including the costs of moving away from fossil fuels, as well as risks related to the physical impact of storms, drought and higher temperatures caused by global warming. They would be required to lay out to shareholders their transition plans for managing climate risk, how they intend to meet climate goals and progress made, and the impact of severe weather events on their finances. 

Companies that have made climate-related pledges will need to provide specifics on how they're meeting those goals.