[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1780 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 1780
To amend the Securities Exchange Act of 1934 to require disclosures
related to the Paris Climate Agreement, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 10, 2021
Ms. Velazquez introduced the following bill; which was referred to the
Committee on Financial Services
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A BILL
To amend the Securities Exchange Act of 1934 to require disclosures
related to the Paris Climate Agreement, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Paris Climate Agreement Disclosure
Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) 197 parties, including the United States, are parties
to the United Nations Framework Convention on Climate Change
(UNFCCC), the principal framework to stabilize greenhouse gas
concentrations at a level that would prevent dangerous human-
induced interference with the climate system.
(2) On December 12, 2015, parties of the UNFCCC adopted the
Paris Agreement, the first comprehensive agreement among all
nations to keep global warming below 2 degrees Celsius.
(3) The Paris Agreement aims to strengthen the global
response to the threat of climate change by holding the
increase in the global average temperature to well below 2
degrees Celsius above pre-industrial levels and to pursue
efforts to limit the temperature increase to 1.5 degrees
Celsius above pre-industrial levels, recognizing that this
would significantly reduce the risks and impacts of climate
change.
(4) The ``Special Report on Global Warming of 1.5 C'' by
the Intergovernmental Panel on Climate Change found that at 1.5
degrees Celsius warming, climate-related risks to human health,
livelihoods, food security, human security, water supply, and
economic growth will all increase, and will increase even more
at 2 degrees Celsius warming.
(5) In 2017, the World Economic Forum issued the Compact
for Responsive and Responsible Leadership with 140 CEOs
pledging to align their corporate values and strategies with
the United Nation's Sustainable Development Goals.
(6) In September 2020, the World Economic Forum and its
International Business Council released Stakeholder Capitalism
Metrics--a set of environmental, social and governance metrics
and disclosures which measure the long-term enterprise value
creation for all stakeholders.
(7) The September 2020 World Economic Forum report
recognizes that there is an emerging consensus among companies
that long-term value is most effectively created by serving the
interests of all stakeholders.
(8) On January 26, 2021, 61 CEOs of some of the world's
largest companies publicly endorsed the Stakeholder Capitalism
Metrics.
(9) One of the core metrics and disclosures defined in the
Stakeholder Capitalism Metrics is for companies to disclose
whether they have set, or have committed to set, greenhouse gas
emissions targets that are in line with the goals of the Paris
Agreement.
SEC. 3. DISCLOSURES RELATED TO GREENHOUSE GAS EMISSIONS.
(a) In General.--Section 13 of the Securities Exchange Act of 1934
(15 U.S.C. 78m) is amended by adding at the end the following:
``(s) Disclosures Related to the Paris Climate Agreement.--
``(1) In general.--Each issuer required to file an annual
report under subsection (a) shall include in such report the
following:
``(A) Whether the issuer has set, or has committed
to achieve, targets that are a balance between
greenhouse gas emissions and removals, at a pace
consistent with limiting global warming to well below 2
degrees Celsius and pursuing efforts to limit it to 1.5
degrees Celsius.
``(B) If the issuer is committed to setting such
greenhouse gas emission targets in the future, but not
at the present--
``(i) by which year the issuer plans to
commit to such greenhouse gas emission targets;
and
``(ii) a detailed explanation for such
position.
``(C) Actions and steps the issuer has taken over
the preceding year to achieve such greenhouse gas
emission targets.
``(D) Actions and steps the issuer plans to pursue
in the forthcoming year to achieve such greenhouse gas
emission targets.
``(E) If the issuer has not set, and does not plan
on committing to set, such greenhouse gas emission
targets--
``(i) a statement to that effect; and
``(ii) a detailed explanation of--
``(I) why the issuer is not
planning on pursuing such greenhouse
gas emission targets; and
``(II) whether the issuer supports
the temperature goals outlined in
subparagraph (A) of this section.
``(2) Definitions.--In this subsection:
``(A) Greenhouse gas.--The term `greenhouse gas'
means carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, sulfur hexafluoride,
nitrogen, triflouride, and chlorofluorocarbons.
``(B) Greenhouse gas emissions.--The term
`greenhouse gas emissions' means the emissions of
greenhouse gases expressed in terms of metric tons of
carbon dioxide equivalent.
``(C) Paris climate agreement.--The term `Paris
Climate Agreement' means the international agreement
adopted by 196 parties, including the United States, at
the 21st Conference of Parties to the United Nations
Framework Convention on Climate Change in Paris, France
on December 12, 2015.
``(D) Temperature goals of the paris climate
agreement.--The term `temperature goals of the Paris
Climate Agreement' means--
``(i) a collective, long-term objective to
hold the greenhouse gas emissions-induced
increase in temperature to well below 2 degree
Celsius;
``(ii) a goal to pursue efforts to limit
the temperature increase to 1.5 degrees Celsius
above the pre-industrial level;
``(iii) a goal to achieve net-zero
emissions before 2050.
``(E) Removals.--The term `removals' means
anthropogenic removals from the atmosphere by any
process, activity or mechanism of greenhouse gas, an
aerosol or a precursor of a greenhouse gas from the
atmosphere.''.
(b) Rulemaking.--Not later than the end of the 1-year period
beginning on the date of enactment of this Act, the Securities and
Exchange Commission shall issue final rules to carry out the amendment
made by subsection (a).
(c) Effective Date.--Section 13(s) of the Securities Exchange Act
of 1934, as added by subsection (a), shall take effect on the effective
date of the rules issued pursuant to subsection (b).
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