A group of investors is urging the Securities and Exchange Commission to make companies disclose the financial risks of global warming in their filings.

The group, comprised of 27 institutional investors from around the country, sent a letter to SEC chairman Christopher Cox, last week, calling on him to recognize global warming as an underreported material risk. Climate change is a growing concern, it contends, particularly in the electric power, auto and oil sectors, where companies are prone to large greenhouse gas emissions. Financial exposure to these factors is uncertain, and the group says shareholders have a right to know if the companies they own are being exposed to such risks.

The group asked the SEC to require companies to include a report on risks due to climate change when filing their securities and proxy statements. This data is essential, it argues, to aid investors in their investment decision making.

Current SEC guidelines stipulate that trends or uncertainties likely to affect a company’s financial condition or operating performance must be disclosed. However, the commission’s rules do not yet specifically include global warming and carbon dioxide emissions. The group wants the SEC to provide stronger regulations on these issues.

The letter was coordinated by Ceres, a national coalition of investors and environmental groups working with companies to address sustainability challenges such as global warming.

—Tim Chan