Environmental Disclosures: Considerations For Board Members

For key stakeholders, environmental and climate change factors present operational challenges and opportunities and are increasingly a focal point for regulators, investors and consumers alike. These groups have placed a heightened focus on Boards of Directors and their fiduciary duty to assess company operations and shape business strategy within the ESG context. Indeed, new rules and disclosure requirements from bodies such as the SEC are anticipated in coming months, particularly those related to climate change considerations. As companies await these looming changes, it is imperative that Boards begin taking stock of current practices and preparing for increased scrutiny and additional disclosures. The following considerations are intended to guide Boards and any relevant subcommittees as they assess environmental risk exposure and prepare for increased disclosure regulation.