The United States Securities Exchange Commission (SEC) has issued a new staff guidance that may require U.S.-traded companies to disclose their exposure to financial risks relating to climate change and emerging policies, reports Nasdaq.

Investors will now be able to inquire about the financial implications of critical issues, such as climate change, on their investment bottom lines. The SEC guidance follows a series of investor lawsuits against emissions-intense companies demanding that they reveal the potential impact of climate policies on their operations.

Several investor groups, including Ceres and the Investor Network on Climate Risk (INCR), requested the SEC to address the lack of corporate disclosure of climate change and other material environmental, social, and governance risks in securities filings. SEC Commissioner Elisse Walters also said the agency is considering new guidance requiring greater carbon disclosure in regular filings with the Commission.

As governments around the world move toward stronger federal regulation of carbon emissions, major industry sectors are likely to see their bottom lines impacted by new climate regulations, reports Nasdaq.