U.S. Securities and Exchange Commission Proposes Rule on Climate-Related Disclosures
Environmental, Energy & Climate Change Law and Regulation Reporter, Volume 2, Number 8
On March 21, 2022 the U.S. Securities and Exchange Commission (SEC) issued a Proposed Rule that would impose new standardized climate-related disclosure requirements on public companies under the Securities Act of 1933 and Securities Exchange Act of 1934.
The Proposed Rule adds sections to Regulation S-K (17 CFR § 229) and Regulation S-X (17 CFR § 210) that would require registrants to make climate-related disclosures in their registration statements and in periodic reports. Information regarding climate-related risks and associated metrics can have an impact on a public company’s performance or position and may be of value to investors in making investment or voting decisions. Additionally, the SEC believes that more transparency and comparability in climate-related disclosures will foster competition. (Proposed Rule, p. 13.)
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