SEC's Prescriptive Climate Disclosure Proposal Could Impose New ESG Obligations On Canadian Inter-listed Issuers

On March 21, 2022, the United States Securities and Exchange Commission (SEC) issued a proposed rule for the enhancement and standardization of climate-related disclosures for public companies [PDF] (the Proposed Rule). The Proposed Rule would apply to domestic U.S. issuers and foreign private issuers that do not report through the multijurisdictional disclosure system (MJDS). Although the Proposed Rule currently does not apply to Canadian issuers accessing U.S. capital markets through MJDS, the SEC has requested specific comments on whether they should also be included. Canadian issuers are encouraged to submit comments on the Proposed Rule, although little time is left to do so as the comment period expires on June 17, 2022.