CRS Examines SEC's Regulatory Posture On Climate Risk

In a new report by the Congressional Research Service ("CRS"), CRS provides an in-depth analysis of the approach the SEC is taking towards climate-related financial risk disclosure criteria. The CRS report provides an overview of existing securities laws that are already impacting the environmental, social and governance ("ESG") disclosure practices of investment funds and investment managers, including recent developments from the Division of Examinations.

The report includes:

1. an overview of the current disclosure regime for climate-related financial risk disclosures;
2. the application of the federal securities law "materiality" standard in the context of climate-related financial risks, discussing recent case law;