SEC Adopts New Climate-Related Disclosure Rules

On March 6, 2024, the U.S. Securities and Exchange Commission (SEC) adopted a final rule that will require public companies to provide certain climate-related information in their registration statements and annual reports. The final rule imposes the disclosure of climate-related risks under new subpart 1500 of Regulation S-K and the disclosure of the certain financial statement impacts of climate-related matters under new Article 14 of Regulation S-X.

Overview

Under Regulation S-K, companies will be required to disclose:

• any material climate-related risks;
• the governance and management of the company's material climate-related risks;
• any climate-related targets or goals that have materially affected or are reasonably likely to materially affect the company's business, results of operations, or financial condition; and