UUCEF to SEC: Climate Risk Is Financial Risk
On July 23, the UU Common Endowment Fund (UUCEF) submitted a comment letter to the U.S. Securities and Exchange Commission opposing the proposed repeal of federal climate-related disclosure rules adopted in 2024. UUCEF urged the SEC to retain requirements for standardized, comparable climate information, arguing that investors use this information to evaluate material financial risks, assess portfolio companies and investment managers, and inform shareholder stewardship.
The letter emphasizes that climate-related risks—including physical risks to assets and supply chains, transition risks, and regulatory exposure—can directly affect companies’ cost of capital, asset values, insurance availability, and long-term earnings. UUCEF also argues that eliminating a consistent federal standard would leave investors relying on a costly patchwork of voluntary disclosures and estimates while potentially increasing complexity for companies already subject to multiple reporting regimes globally.
UUCEF called on the SEC to preserve the 2024 rules, including requirements addressing greenhouse-gas emissions, board and management oversight of climate risk, and material climate-related financial information. The action reflects UUCEF’s broader commitment to using its voice as a long-term investor to advance transparent markets, sound risk management, and responsible investment practices consistent with Unitarian Universalist values.