; (B) the economic disruptions and security threats that result from the physical impacts described in subparagraph (A); and (C) the transition impacts that result as the global economy transitions to a clean energy, low-emissions economy, including financial impacts as fossil fuel assets become stranded as the global community acts to prevent the worst impacts of climate change by keeping the average rise in global temperature well below 2 degrees Celsius above pre-industrial levels; (3) assessing the potential impact of climate-related risks on national and international financial systems is an urgent concern; (4) companies have a duty to disclose financial risks that climate change presents; (5) the Commission has a duty to promote a risk-informed securities market that is worthy of the trust of the public as families invest for their futures; (6) including standardized climate change risk disclosure that is useful for decision makers in annual reports to the Commission will increase transparency with respect to risk accumulation and exposure in financial markets; (7) requiring companies to disclose climate-related risk exposure and risk management strategies will encourage a smooth transition to a clean energy, low-emissions economy and guide capital allocation to mitigate, and adapt to, the effects of climate change; and (8) a critical component in fighting climate change is a transparent accounting of the risks that climate change presents and the implications of continued inaction with respect to climate change. 4. Disclosure (a) In general Section 13 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m ) is amended by adding at the end the following: (s) Disclosures relating to climate change (1) Definitions In this subsection— (A) the term 2 degrees or lower scenario means a widely recognized, publicly available analysis scenario in which human interventions to combat global climate change are likely to prevent the global average temperature from reaching 2 degrees Celsius above pre-industrial levels