Apr 6, 2022 · 22m · green-blueprint

A historic climate rule from America’s financial regulator

Kathleen Brophy · 10m spoken Stephen Lacey · 7m spoken Mark Carney · 21s spoken
0:00 / 0:00

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This episode of The Carbon Copy examines the U.S. Securities and Exchange Commission's landmark proposed climate disclosure rule, tracing its historical roots, federal policy context, and corporate reception. Host Stephen Lacey and guest Kathleen Brophy analyze how mandated transparency aims to mitigate systemic financial risks across modern capital markets.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. How this is scored →

The hosts as informed peer 4.0 Guest teaching 3.5 Guest disagreement 0.3 The hosts pushing back 0.0
05100:0010:0020:000:00–5:25 · The hosts as informed peer 0/10 Canary Media First Birthday Fundraising Announcement Introductory monologue and audio clip compilation introducing Canary Media's fundraising drive and the historical context of Mark Carney's 2015 speech.5:36–11:01 · The hosts as informed peer 5/10 The SEC's Proposed Climate Rule and Historical Context Lacey introduces the SEC's proposed rule and frames the background on climate risk. Brophy walks through international antecedents including the Carbon Disclosure Project and TCFD.11:08–13:43 · The hosts as informed peer 5/10 The Biden Administration's Whole-of-Government Financial Agenda Lacey asks about the Biden administration's expansive May executive order. Brophy explains the mechanics and significance of the Financial Stability Oversight Council (FSOC).13:55–21:16 · The hosts as informed peer 6/10 Corporate Divisions, Political Pushback, and Legal Challenges Lacey raises questions on industry splits, political resistance, and court vulnerabilities. Brophy outlines litigation strategies and congressional appropriations riders in a collaborative discussion.0:00–5:25 · Guest teaching 0/10 Canary Media First Birthday Fundraising Announcement Introductory monologue and audio clip compilation introducing Canary Media's fundraising drive and the historical context of Mark Carney's 2015 speech.5:36–11:01 · Guest teaching 4/10 The SEC's Proposed Climate Rule and Historical Context Lacey introduces the SEC's proposed rule and frames the background on climate risk. Brophy walks through international antecedents including the Carbon Disclosure Project and TCFD.11:08–13:43 · Guest teaching 5/10 The Biden Administration's Whole-of-Government Financial Agenda Lacey asks about the Biden administration's expansive May executive order. Brophy explains the mechanics and significance of the Financial Stability Oversight Council (FSOC).13:55–21:16 · Guest teaching 5/10 Corporate Divisions, Political Pushback, and Legal Challenges Lacey raises questions on industry splits, political resistance, and court vulnerabilities. Brophy outlines litigation strategies and congressional appropriations riders in a collaborative discussion.0:00–5:25 · Guest disagreement 0/10 Canary Media First Birthday Fundraising Announcement Introductory monologue and audio clip compilation introducing Canary Media's fundraising drive and the historical context of Mark Carney's 2015 speech.5:36–11:01 · Guest disagreement 0/10 The SEC's Proposed Climate Rule and Historical Context Lacey introduces the SEC's proposed rule and frames the background on climate risk. Brophy walks through international antecedents including the Carbon Disclosure Project and TCFD.11:08–13:43 · Guest disagreement 0/10 The Biden Administration's Whole-of-Government Financial Agenda Lacey asks about the Biden administration's expansive May executive order. Brophy explains the mechanics and significance of the Financial Stability Oversight Council (FSOC).13:55–21:16 · Guest disagreement 1/10 Corporate Divisions, Political Pushback, and Legal Challenges Lacey raises questions on industry splits, political resistance, and court vulnerabilities. Brophy outlines litigation strategies and congressional appropriations riders in a collaborative discussion.0:00–5:25 · The hosts pushing back 0/10 Canary Media First Birthday Fundraising Announcement Introductory monologue and audio clip compilation introducing Canary Media's fundraising drive and the historical context of Mark Carney's 2015 speech.5:36–11:01 · The hosts pushing back 0/10 The SEC's Proposed Climate Rule and Historical Context Lacey introduces the SEC's proposed rule and frames the background on climate risk. Brophy walks through international antecedents including the Carbon Disclosure Project and TCFD.11:08–13:43 · The hosts pushing back 0/10 The Biden Administration's Whole-of-Government Financial Agenda Lacey asks about the Biden administration's expansive May executive order. Brophy explains the mechanics and significance of the Financial Stability Oversight Council (FSOC).13:55–21:16 · The hosts pushing back 0/10 Corporate Divisions, Political Pushback, and Legal Challenges Lacey raises questions on industry splits, political resistance, and court vulnerabilities. Brophy outlines litigation strategies and congressional appropriations riders in a collaborative discussion.

speaking balance: gold is the hosts, purple is the guest (3 minute bins)

0:00 · the hosts 0% · guest 100%0:00 · the hosts 0% · guest 100%3:00 · the hosts 0% · guest 100%3:00 · the hosts 0% · guest 100%6:00 · the hosts 0% · guest 100%6:00 · the hosts 0% · guest 100%9:00 · the hosts 0% · guest 100%9:00 · the hosts 0% · guest 100%12:00 · the hosts 0% · guest 100%12:00 · the hosts 0% · guest 100%15:00 · the hosts 0% · guest 100%15:00 · the hosts 0% · guest 100%18:00 · the hosts 0% · guest 100%18:00 · the hosts 0% · guest 100%21:00 · the hosts 0% · guest 100%21:00 · the hosts 0% · guest 100%
Sharpest disagreement ▶ 16:00 Brophy compares fossil fuel assets to subprime mortgages

Brophy forcefully denounces fossil fuel industry opposition, asserting that climate disclosure threatens them because fossil fuel assets are effectively the new subprime mortgages.

Hardest push from the hosts ▶ 17:04 Lacey presses on legal and political vulnerabilities

Lacey challenges the optimistic outlook by introducing arguments from Republican lawmakers claiming the SEC is improperly circumventing Congress.

Biggest teaching moment ▶ 11:50 Brophy explains the systemic mandate of FSOC

Brophy provides in-depth technical analysis explaining how Biden's executive order systematically activated post-2008 financial crisis oversight bodies.

The host holds their own ▶ 5:45 Lacey details the scope of standard SEC disclosure requirements

Lacey demonstrates domain knowledge by cataloging the extensive array of standard corporate filings compared to the glaring historical omission of climate risk.

the scores for every segment, with the reasoning behind each
ChapterTopicThe hosts as informed peerGuest teachingGuest disagreementThe hosts pushing backWhy
Canary Media First Birthday Fundraising Announcement 0000 Introductory monologue and audio clip compilation introducing Canary Media's fundraising drive and the historical context of Mark Carney's 2015 speech.
The SEC's Proposed Climate Rule and Historical Context 5400 Lacey introduces the SEC's proposed rule and frames the background on climate risk. Brophy walks through international antecedents including the Carbon Disclosure Project and TCFD.
The Biden Administration's Whole-of-Government Financial Agenda 5500 Lacey asks about the Biden administration's expansive May executive order. Brophy explains the mechanics and significance of the Financial Stability Oversight Council (FSOC).
Corporate Divisions, Political Pushback, and Legal Challenges 6510 Lacey raises questions on industry splits, political resistance, and court vulnerabilities. Brophy outlines litigation strategies and congressional appropriations riders in a collaborative discussion.

Statements from this episode (5)

Assertion Supported
Stephen Lacey: $4 Trillion in Global Financial Assets Face Climate Risk
“Today, there's a four trillion dollar risk hanging over the global financial sector. Climate risk. That's how much capital in the financial system is tied to infrastructure, property, loans, and other goods and services that are threatened by an overheating pl…”
Stephen Lacey Apr 6, 2022 ▶ 1:17
Opinion
Lacey: Early reports by McKinsey and Deloitte lacked clear risk standards
“Instead, we got a lot of corporate sustainability reports written by consultants at McKinsey and Deloitte, but no clear standard for how to assess and manage the risk.”
Stephen Lacey Apr 6, 2022 ▶ 2:19
Assertion Supported
Lacey: TCFD United Hundreds of Companies With $9T in Assets
“It eventually brought together hundreds of companies representing nine trillion dollars in assets, and they committed to a set of guidelines on how to divulge climate risk to investors.”
Stephen Lacey Apr 6, 2022 ▶ 4:16
Prediction Not checkable as stated
Brophy: SEC climate rule will allow investors to evaluate corporate climate resilience
“With this rule, and with the adoption of a final rule, investors will finally have a way to evaluate companies' financial resilience in the face of climate change to determine whether investment in a certain company is risky or not.”
Kathleen Brophy Apr 6, 2022 ▶ 6:51
Opinion
Brophy: Fossil fuel assets are the new subprime mortgages
“The fact that fossil fuel assets are basically the new subprime mortgages. It's existential for them because some of these disclosures could expose that.”
Kathleen Brophy Apr 6, 2022 ▶ 16:09
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