California Attorney General Rob Bonta, alongside a coalition of 20 state attorneys general, has sent a letter to the US Securities and Exchange Commission (SEC) defending the right of credit rating agencies to evaluate climate change risks when assessing corporate and government creditworthiness.
The submission responds to a prior letter sent by a group of Republican state attorneys general criticizing major rating agencies for downgrading fossil fuel companies and energy-dependent jurisdictions. The 20-state coalition argues that the Republican challenge seeks to intimidate independent rating bodies and misrepresents global market realities regarding energy transition risks.
California Attorney General Rob Bonta stated: “From rising sea levels to extreme weather, we know that the climate crisis presents increasing risks to companies and jurisdictions across this country. These risks must be acknowledged — not hidden away because the Trump Administration decides climate change is not convenient to its agenda. Yet, Republican attorneys general are actively challenging the use of independent, third-party analysis of financial risk based on their own anti-sustainability agendas. I joined a coalition of 20 attorneys general in correcting the record: Climate change is real and both global and state economies are full speed ahead on planning for it — even if the Trump Administration is not. Americans must have accurate information to be able to make informed investment decisions based on our climate reality and risks.”
The coalition highlighted that US natural disasters have caused $1.5 trillion (£1.14 trillion) in total damages across 192 major weather events over the past decade, arguing that ignoring physical and regulatory climate risks compromises financial accuracy for investors and pension funds.
The response letter outlines key international and state-level market developments demonstrating ongoing decarbonisation momentum:
- Global Commitments: International adherence to the Paris Agreement remains near-universal with 194 participating nations, while the UK set a target to reduce carbon emissions by 87 per cent by 2040.
- Commercial Shifts: Electric vehicles accounted for nearly 55 per cent of new car sales in China in 2025, contributing to projected reductions in national oil demand.
- California Legislation: State initiatives continue under statutory frameworks, including the 100 Percent Clean Energy Act targeting 100 per cent clean electricity by 2045, the Cap and Invest program, and Low Carbon Fuel Standard rules targeting a 90 per cent reduction in fuel carbon intensity by 2045.
Joining California in the SEC filing are the attorneys general of New York, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Virginia, Washington, Wisconsin, and the District of Columbia.
