Securities and Exchange Commission (SEC)voted to adopt the rule that will standardize the information that publicly traded companies disclose about their material climate-related risks. It is known as the Climate Disclosure Rule.

“Our federal securities laws lay out a basic bargain. Investors get to decide which risks they want to take so long as companies raising money from the public make what President Franklin Roosevelt called ‘complete and truthful disclosure.’ Over the last 90 years, the SEC has updated, from time to time, the disclosure requirements underlying that basic bargain and, when necessary, provided guidance with respect to those disclosure requirements,” says Gary Gensler SEC chair, in a statement.

Institutional investor California Public Employees’ Retirement System (CalPERS) praises the new rule.