On March 21, 2022, the SEC proposed rules to require new climate-related disclosures. As you can read in this Press Release, the proposed rule would require new disclosures, including information about:
- “Governance of climate-related risks and relevant risk management processes
- How any climate-related risks identified by the registrant have had or are likely to have a material impact on its business and consolidated financial statements, which may manifest over the short-, medium-, or long-term
- How any identified climate-related risks have affected or are likely to affect the registrant’s strategy, business model, and outlook
- The impact of climate-related events (severe weather events and other natural conditions) and transition activities on the line items of a registrant’s consolidated financial statements, as well as on the financial estimates and assumptions used in the financial statements.”
The proposed rule would also require disclosure about greenhouse gas emissions. All registrants would make disclosures about Scope 1 and Scope 2 emissions. Scope 3 disclosures would be required if material or if the company has set a goal that includes Scope 3 emissions. Accelerated and large accelerated filers would be required to include an attestation report regarding greenhouse gas emission disclosures.
You can read more in this Fact Sheet and find the proposed rule here. The comment period for the proposed rule will be for 30 days after publication in the Federal Register or 60 days after the date of publication on sec.gov, whichever period is longer.
You can learn more in our One-Hour Briefing scheduled for April 8, 2022, “Climate Change – The SEC’s Proposed New Disclosures.”
As always, your thoughts and comments are welcome.