Climate change-related disclosure continues to be weak or altogether nonexistent in SEC filings of global companies with the most at stake in preparing for a low-carbon global economy, according to two major studies released by Ceres, Environmental Defense Fund (EDF) and the Center for Energy and Environmental Security (CEES). The reports' findings highlight the need for the Securities and Exchange Commission (SEC) to respond to repeated investor requests for formal guidance on climate-related disclosure companies should be providing in securities filings.

"These findings are a clarion call for quick SEC action to require better climate risk disclosure from publicly-traded companies," said Mindy Lubber, president of Ceres and director of the Investor Network on Climate Risk, comprised of 80 institutional investors with $7 trillion in collective assets. "Climate change is a bottom line issue and investors have a right to know which companies are best positioned for the emerging clean energy global economy."

"Corporate climate disclosure falls far short of what CalPERS and other investors need to carry out their fiduciary duties," added Anne Stausboll, chief executive officer of the California Public Employees' Retirement System (CalPERS), the nation's largest public pension fund and one of 18 investors that petitioned the SEC in fall 2007 to issue climate disclosure guidance. "We call on the SEC to ensure that information regarding climate change effects, including regulatory and physical impacts, are accessible and delivered to investors."

The two new studies - an in-depth look at SEC filings in 2008 as well as a multi-year longitudinal study - show companies are seriously deficient in meeting the needs of investors:

- Climate Risk Disclosure in SEC Filings prepared by The Corporate Library for Ceres and EDF assesses climate risk disclosure in the 10-K and 20-F reports filed in 2008 by 100 global companies in five sectors: electric utilities, coal, oil & gas, transportation and insurance. The study found overall limited disclosure: 59 of the 100 companies made no mention of their greenhouse gas emissions or public position on climate change; 28 had no discussion of climate-related risks they face; and 52 failed to disclose actions and strategies for addressing climate-related business challenges. Even more telling, the very best disclosure for any of the 100 companies could only be described as "fair," and only a handful of companies achieved this ranking.

- Reclaiming Transparency in a Changing Climate by CEES, Ceres and EDF reviews over 6,000 SEC filings by S&P 500 companies from 1995 to 2008. While the study finds some modest improvement in climate risk disclosure since 1995, in 2008 75% of annual reports filed by S&P 500 corporations failed to even mention climate change and only 5% articulated a strategy for managing climate-related risks.