Wednesday, March 10, 2021
Company disclosures of climate related risks and opportunities will receive increased scrutiny from regulators, and new climate risk reporting rules may soon be on the horizon, in light of recent Securities Exchange Commission (SEC) announcements and other legislative actions.
President Biden has announced climate change as a top priority, and the SEC is likely to be an important tool to achieving the administration’s climate objectives. The SEC has indicated that it will be reviewing the adequacy of existing corporate disclosures of climate-related risks, whether additional SEC guidance is needed, and whether additional prescriptive climate reporting rules need to be adopted.