28 Jun 2022 2 min read

US markets need climate data to thrive

By Aaron Meder

Aaron Meder, CEO of LGIM America, looks at how the SEC's proposed climate disclosure rule could help improve the quality of information available to investors.


The following is a summary of a full blog available on Barron’s.

The availability and accuracy of information is the lifeblood of successful markets. Regardless of your views on climate change, companies are already making claims and altering strategies to transition into a low-carbon world. Today, one in three S&P 500 companies has a net-zero strategy. If our goal is to manage the transition toward net zero as effectively as possible, we need to move away from a world where climate data is sparse and inconsistent, and toward one where climate disclosures support investment decision-making.

The US disclosure landscape does not, however, currently make available relevant climate risk information investors need. As a result, there are important cross-border incompatibilities and inconsistencies in the level of disclosure between climate risk and other forms of financial risk, leading to potential mispricing of securities.

The long-awaited climate risk disclosure rule proposed by the U.S. Securities and Exchange Commission would contribute to achieving this aim by providing investors with accessible, decision-useful data and information about relevant financial risks.

By establishing climate risk disclosure reporting, the SEC’s proposal helps to level the playing field for investors and companies alike, ensuring investors have better information to make long-term investment decisions. With climate-related financial risks only increasing and investors and regulators across the world mobilising on climate-related disclosures, the SEC’s proposed standards represent an opportunity that US markets cannot afford to miss.

To read the full blog, please visit Barron’s website.

Aaron Meder

Chief Executive Officer, Legal & General Investment Management America

Aaron Meder became Chief Executive Officer for Legal & General Investment Management America (LGIMA) in March 2017. Prior to this appointment, Aaron was Head of Investment for LGIMA’s UK affiliate, Legal & General Investment Management (LGIM), where he led all investment teams across Solutions, Index, Active Fixed Income, Active Equity and Multi-Asset. Aaron has held the positions of Global Head of Solutions for LGIM, as well as Head of US Pension Solutions for LGIMA, where he started his career with the firm in 2010. Prior to joining LGIMA, Aaron was a managing director and Head of Asset-Liability Investment Solutions, Americas for UBS Global Asset Management. He began his career as an actuary at Towers Perrin and Watson Wyatt Worldwide. Aaron has published papers on LDI topics in the Journal of Portfolio Management, Journal of Investing, and as part of the CFA exam curriculum. He is a CFA charterholder and a Fellow of the Society of Actuaries. Aaron holds an MBA from J.L. Kellogg Graduate School of Management and a BS in Actuarial Science from University of Illinois.

Aaron Meder