The Securities and Exchange Commission proposed a rule to compel companies to disclose climate-related risks, a major agenda item for the Biden administration that would lead to indirect pressure on the private sector to turn away from fossil fuels and reduce carbon emissions.

The rule proposed Monday, which is sure to meet legal and political resistance from the industry and Republicans, creates guidelines for how and what companies must report to investors about how their operations affect the climate. It says companies must report direct and indirect greenhouse gas emissions — reports that would be audited by an outside party.