SEC to Update Climate-Related Risk Disclosure Requirements
From the Desk of Jim Eccleston at Eccleston Law LLC:
The Securities and Exchange Commission (SEC) has proposed to update its guidelines on how publicly traded companies disclose climate change-related risks to investors.
The SEC's Acting Chair stated the Commission would review how companies follow their 2010 guidelines, discuss climate-related disclosures and analyze the stock market's handling of climate risks. The SEC plans to update the 2010 policies and expand how much information companies are expected to disclose concerning the risks climate changes pose to their business.
In 2010, the SEC said companies should disclose how climate-related legislation and regulation, international accords, indirect effects of regulation and business trends, and physical damage could impact their finances.
The SEC's announcement is the first step toward expanding the scope of information publicly traded companies are expected to reveal about their exposure to climate change. The announcement comes amid a push from the Biden administration to use the federal government's power over the financial industry to combat climate change.
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Tags: eccleston, eccleston law, sec, climate change