The Municipal Securities Rulemaking Board should incorporate disclosure on climate risk that currently is "severely lacking," Ceres said Monday in a comment letter to the independent regulator.
The MSRB supervises the $4 trillion municipal securities market, issuing rules for municipal securities dealers and municipal advisers and providing municipal securities data and disclosure. The MSRB is overseen by the Securities and Exchange Commission and Congress.
In December, MSRB officials sought stakeholder feedback on its strategic goals and priorities for the future, with comments due Monday.
In the Ceres letter, Steven M. Rothstein, managing director of the Ceres Accelerator for Sustainable Capital Markets, said that while climate change is a systemic risk across all sectors of the economy, "our country's cities, towns, school districts, water and sewer districts, counties and other public entities are even more exposed to physical risks" that they cannot physically avoid. Their exposure to climate risk is critical information for investors, Mr. Rothstein said.
The Ceres letter points out steps taken by other regulators, including the Federal Reserve and Commodity Futures Trading Commission, to address climate risks and the economic impacts. "We have no time to waste and have seen significant steps forward from policymakers, financial leaders and regulators," it said.